MTN loses legal battle against NCA over market share regulation

An Accra high court dismissed an application by the telecommunications giant MTN, seeking to halt the directive by the National Communications Authority (NCA) classifying it as a significant market player (SMP) in the industry.

The court ruled that the NCA did not breach any laws in classifying MTN as an SMP.

The telecommunications giant dragged the NCA to court following the Authority’s decision to categorise it as an SMP. The NCA held that the decision was necessary given MTN’s monopoly of the market – the company is said to control over 40% of the telecommunications industry in Ghana.

The NCA, therefore, decided to initiate measures to promote competition in the industry and also to protect other mobile network operators and consumers.

The ruling by the court paves the way for the NCA to take measures to promote rival operators.

Costs against MTN

Justice Samuel Asiedu, who presided over the court, threw out MTN’s claim that the NCA had violated procedural fairness by declaring the company an SMP.

Aside from dismissing the case, the judge also awarded costs of GHC10,000 against the telecommunications firm.

MTN was represented by the president of the Ghana Bar Association, Anthony Forson Jnr, and Samuel Cudjoe, while the NCA was represented by Gary Nimako Marfo.

The NCA provided evidence from a 2016 report by Analysys Mason which declared MTN an SMP, with roughly 46% share of the Ghanaian market.

The NCA also argued that MTN has since increased its dominance: it now holds approximately 58% of voice and 68% of data in 2020.

Appeal not far-fetched

Meanwhile, Sam Koranteng, corporate services executive at MTN, said the company was considering its options after the ruling.

Speaking to the Daily Graphic, he was tight-lipped about whether the telecommunications firm will appeal against the decision. 

Koranteng, however, said the scope of fregulatory framework was broad and that MTN was amendable to dialogue with the NCA over the issue.

The Electronic Communications Act 2008 (Act 775) and the National Telecommunications Policy (NTP) seek to curtail disparities in market share in the telecommunications sector. 

 E A Alanore

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