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MTN Ghana seeks Judicial review on NCA’s market dominance claims

2 min read

Telecommunication giant Scancom Plc. (MTN Ghana), has dragged the National Communication Authority to court over attempts by the regulator to break up the near-monopoly of the company.

Earlier this month, the government, in its quest to ensure “proper and healthy competition” in the telecommunication sector, directed the National Communication 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.”

According to the government the growing dominance of MTN “has impacted negatively on competition and consumer choice, necessitating corrective action.”

Initially, the telecommunication company said it had not received any formal notification from the NCA on the matter but respects the position taken by the Authority to regulate the sector.

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.

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.

Read full statement below:

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