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MTN accepts Ghana high court ruling on dominant market status

By , Senior news journalist
Ghana , 04 Sep 2020

MTN Ghana has accepted a High Court decision to dismiss its challenge of the regulator’s decision to designate the telco as a significant market power (SMP).

MTN sought a judicial review in June on procedural grounds following the declaration by the National Communications Authority (NCA) as an SMP, arguing that the decision did not meet the requirements of procedural fairness.

A company, which is designated as SMP, means has the ability to heavily influence the price charged for its product because no other companies have the same product or a similar product of the same quality.

MTN is the leading telco in Ghana with a 55.21% market share and on Tuesday, the Ghanaian High Court dismissed the telco’s application seeking a review of its status.

In a statement yesterday, the telco said: “MTN Ghana acknowledges the duty and powers of the NCA to promote fair competition amongst licensed operators in Ghana’s telecommunications sector within the relevant laws of Ghana and acceptable global industry best practices.

“MTN Ghana respects the decision of the High Court and has full confidence in the Ghanaian judiciary. However, regretfully our concerns remain unresolved.”

The mobile carrier added: “Having had our day in court, we will refrain from making further statements or comments on this matter at this time while we explore all available options and next steps in this process.”

The Johannesburg-headquartered telco added it “would like to reassure the Ghanaian Government, cherished shareholders and customers of its unwavering commitment to the delivery of a bold new digital world in Ghana”.

Ghana remains one of the MTN’s key market on the continent.

In the last financial year, which ended in December, MTN Ghana’s service revenue increased by 22.8% year-on-year (YoY), which it said was underpinned by growth in revenue from voice, data and Mobile Money (MoMo).

In the period, it recorded double-digit growth in voice revenue up 19.4% YoY also driven by an increase in the number of active subscribers, which went 11.2%.

MTN also experience solid data revenue growth up 32.5% YoY saying the growth was attributable to the growth in active data users, +26.6%.

Yesterday the company said it remains focused on providing the enabling technology to support Ghana’s digital economy particularly during the COVID-19 pandemic.

“We will keep customers, shareholders and stakeholders abreast of any material development in this matter,” it said.

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