NPP used MTN's SMP classification as a punishment, NDC will use it as a corrective tool – Sam George
The Minister nominee for Communications, Digitalisation and Innovation, Samuel Nartey George, has criticised the previous administration for using MTN Ghana’s designation as a Significant Market Power (SMP) as a punitive measure, vowing instead to employ it as a corrective tool to promote fair competition in the telecommunications sector.
"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 it fixing the distorting in the market," he said.
"We will use the SMP as a corrective tool, not to punish an investor who has made 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 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.
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Speaking during his vetting before the Appointments Committee on Thursday, January 30, Mr George emphasised his commitment to ensuring that Mobile Network Operators (MNOs) meet the required quality standards, warning that those who fail to do so will face sanctions, including fines.
"I will not be a minister who’ll be afraid to impose a fine when MNOs fail to provide the quality of services required, as well as we support them in doing so," he stated.
The SMP classification granted the National Communications Authority (NCA) the power to implement remedial measures to counter MTN’s market dominance. With MTN controlling over 57 per cent of the voice market share and more than 67 per cent of the data market share, the NCA sought to promote competition and protect consumers.
Under the Electronic Communications Act, 2008 (Act 775), the NCA is permitted to take "corrective measures" against an SMP to safeguard competition, support other mobile network operators, and protect consumer interests.
As part of these corrective measures, the NCA was empowered to review and approve all charges by MTN, set price caps on its services, ensure fair access to information for all operators, and impose a 30 per cent interconnect rate for two years in favour of other disadvantaged operators.
Since its designation as a SMP in 2020, MTN Ghana has maintained its market leadership. According to MTN Ghana's third quarter 2024 report, its mobile subscribers increased by 10.8 percent to 28.6 million, while active data users rose by 17.3 percent to 17 million. The Mobile Money (MoMo) service also saw an 18.1% increase in active users, reaching 17 million.
Mr George reaffirmed that under his leadership, the SMP classification would be utilised fairly and effectively to create a competitive telecommunications environment while fostering innovation and consumer choice.