Editorial: What is the true cost of data?

The digital media space has been abuzz with concerns over high Internet data costs, particularly for MTN subscriptions. While consumers express frustration, the reasons behind these prices remain a contentious issue.

MTN, classified as a Significant Market Power (SMP) by the National Communications Authority (NCA), faces regulations designed to promote competition.

The NCA argues that these regulations, including asymmetric interconnection rates, ensure a level playing field for smaller operators to compete effectively and offer competitive pricing.

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However, in today’s digital age, when Internet access is fundamental for everything from education (UNESCO estimates that 1.5 billion students globally lack Internet access) and business operations (e-commerce in the country is expected to reach US$2.2billion by 2025) to entertainment and communication, efficiency and affordability in Internet service provision are non-negotiable. Consumers deserve both reliable connectivity and competitive data packages.

The NCA, while acknowledging these concerns, cites a report indicating Ghana has relatively inexpensive mobile data costs within Africa. But is that truly the case? Evidence from regional peers does not appear to agree. Ultimately, MTN has witnessed record revenue in the time other telcos have struggled to attract users and consumers have been left with prohibitively high cost of data.

Moving forward, collaboration between the NCA, operators and consumers is crucial to bridge the digital divide and ensure Ghanaians can fully harness the digital economy’s potential. Bridging the digital divide requires a multifaceted approach.

The NCA can play a vital role in fostering an environment that encourages investment in infrastructure development, particularly in underserved areas. This could involve streamlined permitting processes or offering tax incentives to operators willing to expand their reach.

On the other hand, operators must prioritise network efficiency and modernisation. Investments in fibre-optic cables and next-generation technologies can significantly improve data transmission speeds and overall network quality, ultimately reducing operational costs which can be passed down to consumers.

Consumers also have a role to play. Educating themselves on available data plans and choosing operators that offer the best value for their usage patterns can empower them to make informed decisions.

Additionally, supporting initiatives that promote digital literacy can help bridge the gap between affordability and responsible data consumption.

Ghana’s digital transformation journey holds immense potential for economic growth and social development. By striking a balance between affordability, competition and infrastructure development, stakeholders can ensure that Ghanaians are not left behind in the digital revolution. After all, we are pursuing an aggressive digitalisation drive aren’t we?

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