MTN Ghana to increase prices for products effective November 28

MTN Ghana has announced that it will increase prices for its products effective November 28, 2023. This notice was made known to customers via an SMS circular.

The company blames rising operational costs for the decision but didn’t disclose the exact rate of the price increase. Despite regulatory advice, MTN emphasizes operational costs rather than its significant market power.

Meanwhile, the Ghana Chamber of Telecommunications has reported that, the telecom sector paid over GHS6 billion in taxes to the government in 2022, making up over 46% of total revenue, even though the sector’s earnings are affected by imported equipment costs, fluctuating forex rates, and increasing power costs.

They have petitioned the government to ease the tax burden on industry players to lower tariffs for consumers, but no action has been taken, leading to repeated tariff increases.

Analysts’ Concerns and Subscriber Impact

MTN recently passed on the 5% communication service tax to customers, after reporting impressive revenues and profits. However, analysts express concerns about subscribers facing constant price hikes despite MTN’s market dominance.

At the Mobile World Congress Africa, in Kigali, MTN Group’s Vice Presidents for Markets, Ebenezer Twum Asante, highlighted concerns about government and regulatory roles in industry costs, emphasizing the need for special regimes to benefit consumers and bridge the digital gap.