Sam George Accuses NPP of Using SMP Classification Against MTN as a Punitive Tool

The Minister-Designate for Communications, Digital Technology, and Innovations, Sam George, has accused the previous New Patriotic Party (NPP) government of using the Significant Market Power (SMP) classification against MTN Ghana as a punitive measure rather than a corrective tool.

Appearing before Parliament’s Appointments Committee on January 30, Sam George criticised the decision by the previous administration to declare MTN an SMP, arguing that the move did not achieve its intended goal of ensuring fair competition in Ghana’s telecom sector. He noted that despite the classification, MTN’s market share had continued to grow, proving that the policy was ineffective in addressing market imbalances.

He assured the committee that under the Mahama administration, the SMP framework would be implemented fairly to promote competition without unfairly targeting any single investor.

According to him, the policy should serve as a corrective measure that encourages equitable participation in the sector rather than one that discourages investment.

He emphasised that telecom consumers must have multiple options, and regulatory actions should support that goal rather than punish companies that have contributed significantly to the sector’s growth.

The SMP classification, introduced by the National Communications Authority (NCA) in 2020, was aimed at regulating MTN’s dominance, as the company controlled over 57 percent of the voice market and more than 67 percent of the data market. Under the Electronic Communications Act, 2008 (Act 775), the NCA was empowered to impose price controls, review charges, and create an environment that fosters fair competition among industry players.

However, Sam George argued that instead of correcting distortions in the market, the policy had been weaponised against MTN.

Despite the restrictions, MTN Ghana has continued to grow, with its third-quarter 2024 report showing a 10.8 percent increase in mobile subscribers to 28.6 million and a 17.3 percent rise in active data users to 17 million. Mobile Money (MoMo) services also expanded, with an 18.1 percent growth in active users, reaching 17 million.

Sam George maintained that under his leadership, the SMP designation would be reassessed to ensure a level playing field while maintaining an environment that supports investment and innovation in the telecommunications industry.

He pledged that the Mahama administration would work to promote competition and improve consumer choices without undermining businesses that have played a crucial role in Ghana’s digital transformation.

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