MTN’s market power to blame for increase in its data cost – Says CUTS International

The West Africa Regional Director for Cuts International, Appiah-Kusi Adomako, has attributed the ability of telecommunication giant MTN to increase the cost for their data without recourse to public concerns to their market power.

MTN Ghana from January 4, 2022, introduced new rates of Fibre broadband and Turbonet bundle prices, increasing by almost 50% with 90 days validity.

This new development has received negative reactions from Ghanaians

Mr Appiah- Kusi Adomako spoke to Citi Breakfast Show Host, Bernard Avle.

“MTN is the largest player, so we can say that MTN has what we call market power, and when a firm has market power, it can actually increase its prices above the current level and sustain it. Because of its large market size, it knows that once they increase prices, it can sustain it without thinking of suffering any losses or drop in demand. So because a firm has a dominant share in the market, it may do certain things that other players cannot do.”

Before the implementation of the new tariffs, GHS 300 worth of data amounted to 393.58GB and 332.57GB Mtn Fibre broadband and MTN TurboNet respectively.

But now the same amount will give customers 231.08GB on MTN Fibre Broadband and 190.23GB TurboNet.

“Y’ello Valued Customer, thank you for the opportunity to serve you. Kindly note, Fibre broadband and TurboNet bundle prices will be increased from 4th January 2022 with 90 days validity. You will enjoy a 50% bonus on every purchase you make within the first three months after the increment. Thank you for your continuous support as we strive to serve you better. #WeDey4U,” MTN sent this message to its customers.

—citinewsroom