You've successfully subscribed to Inclusion Times
Great! Next, complete checkout for full access to Inclusion Times
Welcome back! You've successfully signed in.
Success! Your account is fully activated, you now have access to all content.
Success! Your billing info is updated.
Billing info update failed.

Court throws out MTN case against NCA over monopoly in Ghana

Adaugo Nwankpa
Adaugo Nwankpa

An Accra High Court has dismissed an application by MTN seeking to quash the directive of the National Communication Authority to classify it as a significant market player in the telecommunications industry.

The court in a 33-paged ruling dismissed the case while awarding a cost of GHc10,000 against MTN.

By the decision of the court presided over by Justice Samuel Asiedu, a Court of Appeal judge sitting with additional responsibility as a High Court judge, the NCA can now take measures to promote competition to protect the interest of other mobile service operators.

Background

Telecommunication giant, MTN in June this year dragged Ghana's National Communication Authority to court over attempts by the regulator to break up the near-monopoly of the company.

In a statement, MTN said despite consultations with NCA, the company was left with no choice than to resort to the court to seek redress.

MTN described the government’s move as “unfair” and said the decision to go to court, was a “difficult” move.

The Ministry of Communications on June 9, 2020 announced that the telecommunication industry was facing “glaring disparities” and “imbalances” which it said was unhealthy for competition.

According to a statement signed by the Minister of Communications, Ursula Owusu-Ekuful, the new policies were meant to correct the imbalance in the telecommunication market.

Mrs Ursula Owusu-Ekuful, Ghana's Minister of Communications


The statement indicated that the NCA would, among others, apply the measures, including asymmetrical interconnect rate in favour of the disadvantaged operators, in the exercise of its regulatory mandate.

The NCA said it would also set floor pricing on all minutes, data, SMS and Mobile Money, and review and approve all pricing by the SMP as required by law.

It added that it would insist that SMP did not have differential prices for on-net and off-net transactions while ensuring that various operator vendors were not subjected to exclusionary pricing or behaviour.

These would be done besides the NCA ensuring that SMP’s access to information did not disadvantage any value-added service of non-SMP operators.

Mrs. Owusu-Ekuful pointed out that the measures taken in the past to open up the market and ensure fairer competition, though unpleasant to the dominant player then, had eventually ensued to the benefit of the consumer, which had also seen a vibrant telecom sector today.

Ghana In Focus

Population: 31 million (Compared to South Africa's 59.6 million)

GDP

Total: $69.757 billion (Compared to South Africa's$ 369.85 billion)

Per capita: $2,266 (Compared to South Africa's $6,193)

News

Adaugo Nwankpa

Statistical and Economics Analyst with a focus on social development.