In response to MTN Ghana's dominance in 2020, the National Communications Authority (NCA) gears up to regulate tariff adjustments in the telecom industry.

Historically, mobile network operators set their prices, but MTN's significant market share triggered NCA intervention under Section 25 of Act 775.

NCA accused MTN of violating SMP rules, particularly with lower-priced data bundles, potentially leading to anti-competitive practices.

To address market imbalances, NCA aims to regulate tariffs, with draft guidelines open for public feedback.

Key points include:

Preventing Undercutting: Significant Market Power or dominant operator will be prohibited from offering the lowest prices for any service, preventing them from squeezing out competitors.

Capping Price Advantage: Significant Market Power or dominant operator prices cannot exceed those of other operators by more than 10%, ensuring fair competition and preventing exploitation of its dominant position.

Prior NCA Approval: Significant Market Power or dominant operator must seek NCA approval before changing tariffs, allowing for assessment of potential impact on other operators.

Limited Price Increases for Others: Non-SMP operators can adjust prices without prior approval but require NCA authorization if their proposed price exceeds Significant Market Power or dominant operator.

The NCA underscores that these guidelines adhere to global standards, promoting fair, reasonable, and non-exploitative pricing, especially for Significant Market Power (SMP) operators.

Public input is vital in finalizing regulations, with Ghanaians invited to submit feedback until March 8, 2024.

Despite NCA's efforts to create a level playing field, uncertainties linger. Past initiatives, such as cost-saving measures for non-SMP operators, have yet to translate into tangible service improvements or market share gains.

The effectiveness of these regulations hinges on NCA's enforcement capacity and non-SMP operators' investments in network quality.