SMP designation not intended to stifle MTN’s operations – NCA

The National Communications Authority (NCA) has addressed concerns regarding its recent declaration of MTN as a Significant Market Power (SMP) in Ghana's telecommunications industry. In a press release dated June 2023, the NCA emphasized that the classification of MTN as an SMP was not a hasty decision but one based on extensive research, analysis, and consultations.

“Declaration of SMP and what it means, the NCA notes with concern some issues on its declaration of MTN as a Significant Market Power (SMP) in Ghana's telecommunication industry. The classification of MTN as an SMP is not a decision taken lightly or without careful consideration.

“It was based on extensive market research, analysis, and consultations. The NCA, as the regulatory authority, is entrusted with the responsibility of upholding fair competition and safeguarding consumer interests within the telecommunications industry.”

The NCA, as the regulatory authority responsible for promoting fair competition and safeguarding consumer interests, explained that the SMP designation was aimed at creating a level playing field in the market and protecting consumer choice. According to the NCA, the objective was not to punish or stifle MTN's operations, but rather to prevent any negative impact on competition that could result in higher prices, lower service quality, and reduced innovation.

“The classification of MTN as an SMP aligns with the NCA's mission and fulfills its mandate. The SMP classification is not intended to punish or stifle MTN's operations but rather to ensure a level playing field in the market and protect consumer choice. When an operator attains a significant market share and dominance, it has the potential to impact competition negatively, resulting in higher prices, lower quality of service, and reduced innovation,” the statement added.

The NCA added that by identifying MTN as an SMP, the authority gains the ability to impose certain regulations and measures to prevent the abuse of market power and ensure fair competition. These measures include asymmetric interconnection rates, tariff parity, and technology neutrality.

The NCA further revealed that it believes that implementing these measures will foster competition, encourage innovation, and protect consumers' interests.

Read the full statement below:

Public Information: Declaration of SMP and What it Means. Read more...https://t.co/pe5o3JA2v4 pic.twitter.com/PeMlRcskiM

— NCA Ghana (@NCAGhana) June 20, 2023