MTN sues NCA over ‘near monopoly’ saga

On June 26, 2020, 5:00 PM

Telecommunication giant, MTN, has sued the National Communication Authority over plans by the regulator to clip the wings of the company’s ‘near monopoly’.

MTN Ghana, in a press statement, said it was compelled to go to court because despite “largely encouraging” discussions with the regulator, the NCA was still persisting with the plans.

The CEO, Selorm Adadevoh, called the government’s move “unfair” and said the decision to go to court, was a “difficult” move and “a last resort” taken “after much consultation”.

The Ministry of Communications on June 9, 2020 announced that the telecommunication industry was facing “glaring disparities” and “imbalances” which it said was unhealthy for competition.

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It said MTN held 75% of the market share while three other telcos, AirtelTigo, Vodafone and Glo to scrabble over 25%.

The Communications Ministry said it would be using the Electronic Communications (EC) Act 2008 and the National Telecommunications Policy to address the “imbalances”

The Ministry said the move should not be seen as a punishment, but a correction. The statement indicated that it was not singling out MTN, explaining all other operators which were once dominant in the past had their wings clipped.

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But nearly three weeks after the announcement, MTN has publicly responded to the NCA’s new move. It stressed that while it is within the power of the NCA to promote competition, the steps taken by the regulator should follow applicable law and international best practices.

The company which recorded GH¢1 billion in profit for 2019 after tax insisted it had not engaged in any “anti-competitive behaviour” and expressed regret at the manner in which the NCA was proceeding to clip the wings of Ghana’s number one mobile network.

Selorm Adadevoh said despite the suit, MTN Ghana remained open for talks.

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Story By Edwin Appiah