Mrs Ursula Owusu-Ekuful, Minister of Communications
The High Court has dismissed attempts by mobile telecommunications giant MTN Ghana to secure a court order to quash its classification as a Significant Market Player (SMP) by the National Communications Authority (NCA).
The industry regulator, in a June 9, 2020 letter, entitled “Implementation of Policy Initiatives to correct Telecommunications Market Imbalance”, declared that MTN Ghana’s dominance in the market space negatively impacts competition as it influences consumer choice.
MTN, however, disagreed with the regulator’s position and headed to the High Court for redress.
MTN asked the court to quash NCA’s decision, arguing that the regulator did not give MTN a fair hearing before declaring it a Significant Market Power, adding that such a refusal offends the NCA Act.
MTN also wanted the High Court to prohibit NCA from further circulating or acting on the said decision.
Court decision
In its decision, however, the court, presided over by a Justice of the Court of Appeal, Samuel Asiedu, sitting as additional High Court Judge, said unless MTN successfully proved that NCA was “discharging its functions in a manner not sanctioned by law, it will not be proper for a restraint order to be issued against [NCA].”
Based upon this, the court said it was unable to stop NCA from circulating or acting on its declaration of MTN as a significant market player.
Following the directive, the NCA is expected to start immediate implementation of specific policies to ensure a level-playing field for all network operators within the industry, with emphasis on maximising consumer welfare, as the growing dominance of MTN, according to the regulator, “has impacted negatively on competition and consumer choice, necessitating corrective action.”
NCA critisised
Some industry watchers had earlier appealed to the government to tread cautiously with its plans to implement policies to limit any market imbalance in the telecommunications sector.
They also cautioned the government not to subjectively use regulations against law-abiding businesses.
They said the move appeared to be one that would punish innovative and successful businesses.
But telecoms analyst Patrick Boateng said the decision by the government to provide a level-playing field for all network operators and break the dominance of MTN Ghana in the telecommunications sector was not a punishment.
He said the move was to create an equal space for all industry players and forestall negative competition.
Source: dailystatesman.com.gh/Business Desk
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