In response to increasing public dissatisfaction with mobile data prices, the National Communications Authority (NCA) has begun consultations with various stakeholders to address the issue and safeguard consumer interests.
Dr Joe Anokye, Director-General of the NCA, disclosed this in an exclusive interview with Umaru Sanda on Citi Eyewitness News. The consultations come after significant social media protests against rising data costs, particularly with MTN Ghana. These protests were triggered by a report from cable.co.uk, which claimed that Ghana has some of the lowest data prices in West Africa and Africa. Critics, however, argue that the report does not align with the actual average costs of data in Ghana.
The Rising Prices
Campaigners blame the NCA for the surge in data prices, accusing the authorities of fostering an environment where MTN, designated as a Significant Market Power (SMP) in June 2020, has been able to raise prices without competitive pressure. There have been calls for the dissolution of the NCA Board in response to these concerns.
Dr Anokye clarified that under the current deregulated framework, the NCA does not set or control telco prices but reviews and approves pricing proposals submitted by the operators. He noted that no new pricing proposals have been submitted since November 2023.
Addressing Market Imbalances
Dr Anokye highlighted the significant market imbalance, with MTN controlling over 80% of the mobile data market, which threatens the viability of other telcos and risks leading to a monopoly. To address this, the NCA has regulated MTN to ensure fair competition and prevent market dominance.
Measures Implemented by NCA
Asymmetrical Interconnect Rates: The NCA has implemented an asymmetrical interconnect rate to support non-SMP telcos. This measure allows smaller operators to save 30% on interconnection fees paid to MTN, which handles a large portion of traffic. This intervention saved non-SMP telcos GHS86.6 million in the first three years.
National Roaming: A national roaming policy enables customers of networks with poor coverage to access services from MTN in areas with better connectivity. Revenue from this service is shared between MTN and the smaller network.
Technology Neutrality: The NCA has facilitated Next-Generation Infrastructure Company (NGIC) licensing, which will establish shared 4G and 5G infrastructure. This will enable all industry players to access advanced technology more affordably and equitably.
Future Outlook
Dr. Anokye emphasized that the NCA’s long-term goal is to ensure fair competition and protect consumer rights. While acknowledging current frustrations, he argued that the regulatory framework and interventions are designed to maintain a balanced market and foster a competitive environment.
The consultations will explore ways to balance immediate consumer relief with the need for long-term market stability, ensuring that the telecom sector remains competitive and inclusive.
