MTN hoping for speedy resolution in Ghana

MTN says that it does not expect an order by Ghana’s National Communications Authority (NCA) to stop the sale of new SIMS to have a material impact on the performance of the business for 2012.

Earlier this week, the NCA ordered MTN’s operation in the country, Scancom, to cease adding new customers with immediate effect due to the poor quality of its network.

“MTN confirms that the sale of new SIMS has been temporarily suspended by the National Communications Authority of Ghana. This ban will not impact existing subscribers of MTN Ghana, and we currently do not expect this to have a material impact on the performance of the business for 2012,” said Paul Norman, MTN Group chief HR and corporate affairs officer.

“MTN is actively engaging the regulator to address their concerns and hope to have a speedy and amicable resolution of the matter,” Norman said.

The NCA said in a statement that it has had to engage Scancom (MTN Ghana), on several occasions, on issues of quality of service degradation (i.e. network reliability, network availability, call drop, call set-up, denial of service etc) being experienced by consumers of mobile services.

It follows a recent spate of service disruptions on the MTN network, the authority said.

“In spite of these engagements, network performance on MTN continues to deteriorate. Consequently, the NCA has directed Scancom Ltd to, with immediate effect, cease selling and/or adding any new SIM cards/subscribers to MTN network until further notice.”

In a quarterly update for the period ended September 2012, published in October, MTN Group highlighted a 4.8% quarter on quarter rise for its operation in Ghana to 11.27 million subscribers, “a strong result in a highly competitive market,” it said.

According to the NCA, the total cellular/mobile voice subscriber base in Ghana as at September 2012, stood at 24,884,195.

MTN had a marginal increase and maintained its position as the market leader with a subscriber base of 11,269,926, representing 45% of total market share.

Vodafone, the second largest operator in the country, increased its base to 5,027,207, representing 20% of total market share.

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MTN hoping for speedy resolution in Ghana