MTN drags NCA to court over monopoly brouhaha
Telecommunication network, MTN has sued the National Communication Authority (NCA) over the latter’s decision to declare MTN as Dominant/Significant Market Power (SMP).
MTN says it was compelled to go to court because despite “largely encouraging” discussions with the regulator, the NCA was still persisting with the plans.
The NCA on June 9 declared MTN declared SCANCOM (MTN) as a Significant Market Power (SMP).
The government, through the Ministry of Communications, directed the NCA to enforce the provisions of the Electronic Communications (EC) Act 2008 and National Telecommunications Policy to address glaring disparities in market share and revenue share in the sector.
The sector Minister Ursula Owusu noted that the policy directive was motivated by evidence of a growing market imbalance and creation of a near-monopoly in the telecom sector.
“This imbalance potentially exposes the country to the dictates of the dominant operator and negatively impacts on competition and choice for the consumer as well as investments within the sector.
“The policy is, therefore, aimed at ensuring proper and healthy competition among telecommunications players, secure a much better pricing policy for the consumers and facilitate a sound regulatory regime,” she said.
“With this designation of SMP, 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,” the release said.
But MTN says it has sued the NCA because despite “largely encouraging” discussions with the regulator, the NCA was still persisting with the plans.
Read the statement from MTN