11/05/2022
TIME FOR GHANAIANS TO BOYCOTT MTN?
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Scancom PLC (Formerly MTN Ghana) is the largest telecommunication network in Ghana which commands over 60% market share in terms of mobile subscriptions, internet data, voice communications, among others (averagely). There’s no denying the fact that MTN is the most preferred network in Ghana due to their wide coverage and the stability in their network compared to other companies in the industry.
Few years ago, MTN phased out the production of scratch cards. Sources reveal that the main reason for this decision was to minimise contact, a major way through which COVID 19 spread at that time. Instead, subscribers would have to use either mobile money (MoMo) or the credit transfer system in purchasing airtime.
Akin to this decision, investments in machines for the scratch cards production halted. MTN has therefore made huge savings from here. Even if these assets were not fully depreciated, it’s possible they could have been impaired by now if they were of no use and tax credits for any impairment losses have already been taken by MTN. Better still, MTN could have possibly sold this now idle equipment to recoup part of their investments in those assets. Clearly MTN has also gained here.
Now, as these equipment are no more there, maintenance cost, electricity to run them, labour cost on these machines and other incidental costs have all been saved in the short and long terms.
Commissions on scratch cards paid to big distributors and wholesalers in the distribution chain have all been saved and pocketed by MTN. These commissions are no longer paid to the distributors. Indirectly these distributors and wholesalers have all been kept out of business. Employees who worked with these distributors have also lost their jobs due to this.
With all these benefits that MTN Ghana has enjoyed for scrapping recharge cards, the expectation was for MTN to follow the footsteps of their major competitor, Vodafone, to scrap mobile money charges on all P2P transfers to lessen the burden of the newly introduced ELEVY on subscribers. MTN Ghana has only reduced its MoMo charges from 1% to 0.75% and from GHS10.00 to GHS7.50 for the transfers above GHS1,000.00.
We believe that MTN Ghana should be able to comfortably absorb these charges as Vodafone Ghana is doing. All P2P transfers with Vodafone Cash are free in Ghana no matter the amount. In transferring monies currently in Ghana, the only charges Vodafone subscribers bear is the ELEVY. Prior to the ELEVY, Vodafone Cash users did not incur any charges on all P2P transfers.
With the kind of LOYALTY MTN Ghana has enjoyed from its cherished customers and how profitable the company has been over the years, MTN should give it a second thought to imitate what Vodafone Ghana is currently doing.
Others may argue that MTN offers 200% bonus on all airtime bought using MTN mobile money. This is however not peculiar to only MTN as all Telcos have put out some of these promotions to encourage the usage of their mobile money services. In addition, both Vodafone and MTN all engage in corporate social responsibilities in different forms. However, scrapping the MoMo charges will be the gesture that will directly benefit each MTN subscriber and MTN Ghana is encouraged to consider this.
We the consumers of MTN’s services must constantly remind them about this. If this is not urgently considered, then we could consider switching to Vodafone Ghana which will help reduce our transaction cost to enable us to save some money for other commitments.
Is it time for Ghanaians to move on from MTN Ghana? What are your comments? Let’s continue the discussions down below.
