The Minister-Designate for Communications, Digital Technology, and Innovations, Sam George, has accused the previous New Patriotic Party (NPP) administration of using the Significant Market Power (SMP) classification of MTN Ghana as a punitive tool rather than a corrective measure.
Speaking during his vetting before Parliament’s Appointments Committee on Thursday, January 30, Sam George criticised the NPP government’s approach, arguing that it failed to address market imbalances.
The previous administration used the SMP tool as a punitive measure. The SMP tool is meant to be a corrective measure. In fact, since the Minister declared MTN an SMP, their market share has grown, instead of fixing the distortion in the market,” he said.
He emphasised that under the Mahama administration, the SMP classification would be used to promote fair competition rather than to punish investors.
“We will use the SMP as a corrective tool, not to punish an investor who has made a solid investment in our country over the past years, but also to make sure that we create an equitable playing space for all the players so that the customer has a multiplicity of options to benefit from.
So the SMP will be used as a corrective tool, not as a punitive tool under the Mahama Administration,” he explained.
The SMP classification, granted to MTN by the National Communications Authority (NCA) in 2020, allowed the regulator to implement corrective measures to address market dominance. With MTN controlling over 57% of the voice market and more than 67% of the data market, the NCA sought to enhance competition and protect consumers.
Under the Electronic Communications Act, 2008 (Act 775), the NCA was authorized to impose price controls, review charges, and ensure fair access to market information for all operators.
Despite these measures, MTN Ghana has maintained its dominant position. According to the company’s third-quarter 2024 report, mobile subscribers increased by 10.8% to 28.6 million, while active data users rose by 17.3% to 17 million. The Mobile Money (MoMo) service also saw an 18.1% increase, reaching 17 million active users.
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