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Is MTN’s exclusion from Ghana’s upcoming neutral 5G network a gambit to balance competition?

Posted on by darion

In a significant step towards developing Ghana’s digital infrastructure, the government, in partnership with seven industry players, has established the Next-Gen Infrastructure Company (NGIC) to deploy a common 5G network across the country.

This consortium includes: Ascend Digital, K-NET, Radisys, Nokia, Tech Mahindra, and two local telecommunications companies –AT Ghana and Telecel Ghana. However, there was no single main player in the consortium: MTN Ghana.

MTN was ready to deploy 5G in 2022

MTN Ghana, the country’s leading telecommunications operator, has previously expressed its readiness to launch the 5G network in Ghana. It planned a pilot for 2022 but canceled it because the National Communications Authority (NCA) did not grant MTN the necessary licenses to proceed.

This situation raises questions about the competitive dynamics in the market and the government’s strategic considerations in shaping the future of telecommunications in Ghana.

Is the government trying to stop a repeat of the MTN 4G era?

When the NCA auctioned its 4G spectrum in 2017, MTN was the only entity to bid and subsequently won the right to deploy 4G to its customers.

It took three years for Telecel (formerly Vodafone) to roll out its own 4G service to its customers, and AT Ghana (formerly AT Ghana) hasn’t even rolled out 4G to date.

It is therefore not surprising that the regulator does not want a repeat of the 5G rollout when MTN appears to be leading the way in this space.

MTN remains the dominant player

In 2020, the Ministry of Communications and the National Competent Authority classified MTN as a “Significant Market Player” (SMP) due to the company having a majority share in both the data and voice markets in Ghana. As of 2022, MTN has over 65% share both voice and data.

MTN took the Ministry of Communications to court but later withdrew.

Providing a “neutral” field for competition

By forming a consortium that excludes the dominant player, the government may seek to create a competitive environment that prevents a single entity from monopolizing 5G infrastructure. This strategy could potentially lead to more equitable access to high-speed internet services for all Ghanaians, regardless of service provider.

Creating a neutral, shared platform such as NGIC is seen as crucial to providing the public with affordable and rapid access to data.

The decision to establish NGIC is also in line with the government’s policy of prioritizing the use of a neutral infrastructure company to accelerate the deployment of 5G services.

What’s next for MTN Ghana?

The exclusion of MTN Ghana from the 5G consortium appears to be a deliberate policy choice aimed at promoting competition, ensuring market balance and aligning with Ghana’s broader digital transformation goals.

With the infrastructure already in place, what next steps will MTN take as its competitors launch 5G services in the next six months? Since the government’s announcement, the popular telecom operator is yet to make any public statements about its 5G plan.

It is not known whether this government game aimed at balancing competition will work in the long run. However, for now, MTN will remain the dominant force in Ghana’s telecom space and we don’t think the launch of 5G will change the balance of power.

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