The Minister-Designate for Communications, Digital Technology, and Innovations, Sam George, has criticized the previous New Patriotic Party (NPP) administration for allegedly using the Significant Market Power (SMP) classification of MTN Ghana as a punitive tool rather than a corrective mechanism.
Speaking during his vetting before Parliament’s Appointments Committee on Thursday, January 30, Sam George argued that the NPP government’s handling of the SMP classification failed to address market imbalances effectively.
“The previous administration used the SMP tool as a punitive measure. The SMP tool is meant to be a corrective measure. In fact, since MTN was declared an SMP, their market share has grown, instead of resolving the distortions in the market,” he stated.
Sam George assured that under the Mahama administration, the SMP classification would be applied to foster fair competition while respecting investors' contributions.
“We will use the SMP as a corrective tool, not to punish an investor who has made significant investments in our country, but to create an equitable playing field for all industry players. This way, customers will benefit from having multiple options,” he explained.
The SMP classification, introduced by the National Communications Authority (NCA) in 2020, allowed the regulator to implement measures aimed at addressing market dominance. At the time, MTN controlled over 57% of the voice market and more than 67% of the data market. The NCA’s objective was to enhance competition and protect consumers by enforcing price controls, reviewing charges, and ensuring fair access to market information as stipulated under the Electronic Communications Act, 2008 (Act 775).
Despite these interventions, MTN Ghana has maintained its dominant position. According to the company’s third-quarter 2024 report, its mobile subscribers grew by 10.8% to 28.6 million, active data users increased by 17.3% to 17 million, and its Mobile Money (MoMo) service saw an 18.1% rise, reaching 17 million active users.
Sam George’s remarks highlight the Mahama administration’s commitment to addressing market distortions while promoting fair competition and encouraging investment in the telecom sector.