NCA has failed to enforce effective regulations in Telcos sector – CUTS International

NCA has failed to enforce effective regulations in Telcos sector – CUTS International.

The Regional Director for CUTS International, Appiah Adomako, has criticized the National Communications Authority (NCA) for its failure to enforce effective regulatory directives in the telecommunications sector.

His comments follow an announcement by MTN Ghana on some price adjustments across all its products and services due to rising operational costs, targeting a minimum increase of 15% across its offerings.

In an interview on the Citi Breakfast Show on Wednesday, Mr. Adomako expressed concerns about MTN, potentially establishing a monopoly in the sector if stringent measures are not implemented.

He urged the NCA to develop strategies that would balance the market power held by telecommunications companies in Ghana.

“When you look at the NCA licensing requirement, there’s nothing that says that as an investor you must invest at least 30% of your previous year’s earnings into the sector, and that is where the regulatory bit has failed. However for now MTN can be asked to slow down a bit and that is also another regulation directive. This is because the more it scales up investments, it will become a monopoly in the long run,” he said.

He also highlighted some strategies that could be adopted by the government to effectively manage the telecommunications space in Ghana, while decreasing its effects on consumers.

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In 2020, the NCA declared MTN as a Significant Market Player (SMP) in the local voice and SMS markets, aiming to correct the imbalance in the market according to the Telecommunications Act 2008, Act 775.