How does breaking MTN near monopoly benefit consumers? Here are 10 reasons

Government has announced plans to break the ‘near monopoly of Ghana;s domiant telco, MTN citing unhealthy competition in the sector.

 

MTN controls 75% of the market share while three others, Glo, AirtelTigo and Vodafone split 25%.

Gov’t set to break MTN ‘monopoly’ 

The Ministry of Communication has said it has issued some seven directives to the telcos aimed at addressing the “glaring disparities.”

 

But how does that benefit consumers? Here are at least 10 benefits outlined by the ministry.

 

 BENEFITS TO THE CONSUMER

Among other things, the implementation of this policy would ultimately benefit the consumer in many ways.

• Maximises consumers’ welfare:
  • Offer choice to consumers with the stimulation of innovative products and promotions.
  • Give consumers the power to switch service providers for other experiences and not restrict them to the largest provider.
• Stimulate the activities of third party vendors such as Value Added Service providers and give them a choice to work with non-SMP operators.

 

• Create a catalyst for passive infrastructure sharing within the industry especially for national roaming services and increase service choice for consumers within areas where SMP is present.

 

• The dominant operator would not be able to use predatory pricing to eliminate competition.

 

• The dominant operator would not be permitted to use its information on you (the consumer) to preclude others from offering you good innovative services at similar costs.

 

• The dominant operator would not be permitted to charge a high price to call, SMS, or transfer money to other services, while keeping its own prices low.

 

• The dominant operator would not be permitted to offer lower quality services on these interconnections to attempt to switch your friends’ operators to the monopolistic one.

 

• Customers can rest assured that the NCA will be vigilant against any anticompetitive behaviour by any operator to ensure that the customer is always getting the best quality, the best price, the most innovation, and the opportunity to choose their preferences.

 

• Increased competition may bring better quality services, better pricing, and more innovation to the market, for voice, data, video, and value added services (including mobile financial services).  These benefits include:

 

• Better ability to switch networks, including reducing price differentials, for voice, data and value added services