Government is encouraged to be careful and tread cautiously, in its attempt to deal with the imbalance in the telecommunication sector, so it does not send the wrong signals to will-be investors.
The Ministry of Communications says, its data indicates a worrying trend that demanded immediate action to correct the growing market imbalance, and the creation of a near-monopoly in the industry.
Minister of Communications, Mrs Ursula Owusu-Ekuful said, per the National Telecommunications Policy (NTP), any operator with 40 percent or more market share in voice, data, short messaging service (SMS), and value-added services such as mobile money is considered a significant market power (SMP).
The NCA, has therefore declared SCANCOM Limited (MTN) as an SMP, and with that designation, the regulator is required to take corrective measures under the law to facilitate more market competition, ensure proper pricing for consumers and facilitate the overall growth of the telecommunications industry.
According to the Authority, from the fourth quarter of 2018 to the fourth quarter of 2019, Scancom’s market share rose from 49.08% representing 22.09 million subscriptions to 22.5 million prescriptions, hence becoming the dominant player in the telecom industry.
The government has therefore directed the National Communications Authority (NCA) to enforce provisions of the Electronic Communications Act, 2008 (Act 775) and the National Telecommunications Policy (NTP) to address disparities in market and revenue share in the telecommunications sector.
However, a Telecom Analyst, Fouad Chalabi believes such move by government is unfair and could stifle competition.
Godfred Sey/Ahotoronline.com
