Blame MTN’s market power for increase in its data cost – Expert

MTN announces increase in the price of its data bundles

MTN has a large market size

Customers have complained incessantly about the increase in data cost

West Africa Regional Director for Consumer Unity & Trust Society (CUTS) International, Appiah-Kusi Adomako, said the telecommunication giants MTN is able to increase the cost of its data packages without considering the public because it has an upper hand in the telecommunication.

MTN Ghana has increased the rates of its data packages, Fibre broadband, and Turbonet bundle prices, by almost 50% with 90 days validity.

This new development has received negative reactions from Ghanaians.

Mr Appiah- Kusi Adomako speaking to Citi Breakfast Show Host, Bernard Avle said “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.”

Formerly,GH¢300 worth of data amounted to 393.58GB and 332.57GB Mtn Fibre broadband and MTN TurboNet respectively.

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

MTN in a broadcast message to its customers, said “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”.