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MTN Reacts To Gov’t’s Plan to Break Its Dominance in the Telecom Market

BY: Lambert Atsivor | Voltaonlinegh.com |

Ghana’s leading telecommunication company, MTN Ghana, has reacted to government’s plans to implement a new policy ostensibly targeted at breaking its dominance in the country’s telecom market, saying they were ‘a responsible market leader in a highly competitive market.’

Communications Minister, Madam Ursla Owusu-Ekuful in a statement over the weekend directed the industry regulator, the National Communications Authority (NCA) to enforce the provisions of the Electronic Communications (EC) Act 2008 and the National Telecommunications Policy to address glaring disparities in market share and revenue share in the sector.

The directive, according to the minister was motivated by evidence of a growing market imbalance and creation of a near-monopoly in the telecom sector by the market leader, MTN, which controls almost 75 per cent of telecommunications market share, according to the statement.

This situation, she noted has impacted negatively on competition and consumer choice, necessitating corrective action.

The Telecom Market share districts for the first Quarter of 2020

Read the Government’s full statement below.

However, the telecom giant in a brief response on Monday noted that, though it was yet to receive a formal notification from the regulator on the new policy directives, it respects the NCA’s purview to regulate the telecommunication sector in Ghana based on legislation and best practices.

“We remain an ethical business committed to its regulatory obligations while striving to deliver on its belief that everyone deserves the benefits of modern connected life,” the statement noted as the company refrained from commenting further on the issue while it awaits details from the regulator for assessment.

 MTN Ghana however assured its stakeholders of its commitment to the delivery of a bold new digital world in Ghana, while it remained focused on providing the enabling technology to support Ghana’s digital economy and drive productivity, particularly during the COVID-19 pandemic.

Read MTN’s full statement below


Highlights
  • MTN is a South African Multinational company which entered the Ghanaian market in 2006 after taking over then telecom operator, Areeba.
  • – It has since maintain its lead in the highly competitive market, delivering superior voice, data and other value added services to its subscribers.
  • – MTN was the first to launch Mobile Money Service in the country, which it remains the market leader.
  • – The company in 2015 acquired a 4G license from government to deliver high speed internet connectivity across the country.
  • – In line with regulatory requirements for the 4G license, MTN in 2018 offloaded 30 percent of its stake to Ghanaians through an Initial Public Offer (IPO), making it a partly owned Ghanaian entity.
  • The telecom giant is also a good corporate citizen, who has on a number occasions received platinum awards from the Ghana Revenue Authority as the highest taxpayer to government.

Source: www.voltaonlinegh.com

 

 

 

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