The telecommunications giant MTN Ghana has begun a process to challenge the steps of the National Communications Authority (NCA) to declare the company as the Significant Market Power (SMP).
Earlier this month, the government instructed the National Communications Authority (NCA) to enforce the 2008 Electronic Communications (EC) Act 2008 and the National Telecommunications Policy to ensure “proper and healthy competition” in the telecommunications sector to resolve the issue of discrepancy in the market and revenue shares.
According to the government, the increasingly dominant of MTN has “negatively impacted competition and consumer choices and made corrective actions needed”.
The telecommunications company initially stated that they had not received official communication from the NCA on this topic, but had followed the position of the regulatory authority.
But the MTN Ghana now says that, despite ongoing talks with the regulators to make further decisions, the NCA has already begun the implementation process to ensure competition, and that is why the networking giant has finally decided to appeal the decision in court.
“Although this commitment is very encouraging, the NCA continues to implement this intervention. Thus, after extensive consultation and as a last resort, the MTN Ghana has made a difficult decision to seek justice from the court in order to review the NCA’s decision, ensuring compliance with procedural fairness requirements.”
Some industry observers have described the government’s decision as unfair to the current industry leader, MTN.
They say this step seems to be one that punishes innovative and successful companies.
“Unfortunately, the way MTN has recently been declared Dominant/SMP raises concerns about clear procedural irregularities and substantive problems,” MTN noted.