‘Our concern remain unresolved; but we respect court ruling’ – MTN

Mobile telecommunications giant, MTN Ghana, has expressed disappointment in the Accra High Court’s ruling in the case challenging its ‘near monopoly’.

It added that although their concerns were not resolved, the company will accept the decision of the court in good faith.

“Although we respect the decision of the High Court and has full confidence in the Ghanaian judiciary. However, regretfully our concerns remain unresolved.

“Having had our day in court, we will refrain from making further statements or comments on this matter at this time,” MTN said in response.

The company, however, did not clarify if it will seek a review or an appeal, except to say that, it will “explore all available options and next steps in this process”.

The court’s judgment

The Commercial Division of the High Court on September 1, this year, dismissed a request by MTN to secure a court order to quash its classification as a Significant Market Power (SMP) by the NCA.

This was after the industry regulator had declared MTN as a Significant Market Power, and said that its dominance in the market space negatively impacted competition as it influenced consumer choice.

In its ruling, the court held that the evidence before it, including what was presented by MTN, proved that the company was made aware of the process that led to the NCA classifying it as a significant market player.

Court documents proved MTN was informed as far back as 2014.

The court maintained that MTN was given an opportunity to partake in the process, and it duly wrote a letter on September 12, 2014, to make an input that led to the classification.

“A party who has been given an opportunity to participate in the exercise cannot turn around to complain that it has been denied hearing, leading to a breach of the rules of natural justice,” Justice Asiedu said.

He further held that MTN failed to adhere to the laid down processes, as stipulated by law, to seek redress against the National Communications Authority.

Background

Pursuant to Section 20 (10) of the Electronic Communications Act, 2008 (Act 775), on June 9, this year, the NCA classified MTN as a SMP, after the regulator had determined that the mobile network operator controlled more than 57% share of the voice market, as well as more than 67% of the data market.

The classification means that the NCA has concluded that MTN controls more than 40% of the telecommunications industry.

As mandated by law, the NCA can take remedial measures against MTN to curtail its market dominance in order to promote competition in the industry and also protect the interest of consumers.

Act 775 allows the “corrective measures” against an SMP in order to promote competition, protect other mobile network operators and consumers.

As part of the corrective measures, the NCA, among other things, decided to “review and approve all charges by MTN”, set caps on what MTN can charge for its services, ensure that MTN’s access to information did not disadvantage other operators and also impose a 30% interconnect rate for two years in favour of other “disadvantaged operators”.