NCC Begins Review of Mobile Termination Rates After Eight Years »

The Nigerian Communications Commission (NCC) has launched a comprehensive review of the country’s Mobile Termination Rates (MTR), the first reassessment since the current pricing framework was introduced in 2018.

Mobile Termination Rates are the regulated fees telecommunications operators pay one another for completing calls across different networks. For example, when a customer on one network calls a subscriber on another, the originating operator compensates the receiving network for terminating the call.

Speaking during a stakeholders’ consultation in Lagos, the NCC’s Head of Competition and Tariff, Mrs. Omotayo Mohammed, said the review was necessary to align the existing framework with prevailing economic and technological realities.

She noted that the current rates—N3.90 per minute for established operators and N4.70 per minute for new entrants—have remained unchanged for the past eight years despite significant changes in the telecommunications landscape.

According to Mohammed, rising inflation, the depreciation of the naira, escalating energy costs and sustained investments in network infrastructure have substantially increased the operating costs of telecom companies.

She added that advances in technology, including the deployment of 5G services, Artificial Intelligence-powered applications and the Internet of Things (IoT), have also reshaped network traffic and industry operations.

Mohammed further observed that the widespread adoption of Over-the-Top (OTT) platforms such as WhatsApp and Telegram for voice calls and messaging has reduced dependence on traditional interconnection services, creating new market conditions that were not anticipated when the existing rates were established.

“The foundation of wholesale interconnection affects every stakeholder in the telecommunications ecosystem. Misaligned termination rates can discourage investment, distort competition and ultimately impact consumers,” she said.

She explained that the ongoing review is intended to produce a cost-reflective pricing framework capable of promoting healthy competition, encouraging investment and safeguarding consumer interests.

To facilitate the exercise, the NCC has engaged KPMG as consultants to conduct the study and coordinate stakeholder engagements over the next four months.

Representing KPMG, Partner Mr. Wole Adelokun assured industry players that the review process would be transparent, data-driven and based on broad consultations with operators and other stakeholders.

He said participants would be given opportunities to examine key assumptions, validate submitted data and make contributions before any final decision is reached.

“Our objective is to develop a framework that accurately reflects market realities while supporting the long-term sustainability of the telecommunications industry,” Adelokun stated.

Beyond Mobile Termination Rates, the consultancy will also assess issues relating to Unstructured Supplementary Service Data (USSD), Application-to-Person (A2P) messaging, International Termination Rates (ITR), Mobile Virtual Network Operators (MVNOs) and concerns over grey-route traffic.

Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Mr. Gbenga Adebayo, described the review as crucial to the future sustainability of the sector.

He noted that operators have continued to grapple with inflationary pressures, exchange rate volatility, rising energy costs and the financial demands of expanding network infrastructure.

According to Adebayo, implementing a cost-reflective interconnection framework will help sustain investments in telecommunications infrastructure while ensuring improved service delivery for consumers.

He added that despite prevailing economic challenges, operators remain committed to expanding network coverage and investing in infrastructure upgrades to enhance service quality.

The ALTON chairman stressed that regulatory policies must evolve alongside technological innovation and changing consumer preferences to maintain the industry’s competitiveness.

In her closing remarks, the NCC’s Director of Public Affairs, Mrs. Nnenna Ukoha, described the consultation as one of the commission’s most significant stakeholder engagements, given its potential impact on competition, pricing, service quality and overall consumer experience across the telecommunications sector.

She encouraged stakeholders to utilise the consultation period to provide additional data, recommendations and perspectives that would contribute to a balanced, transparent and sustainable outcome.

According to the NCC, the review is expected to strengthen market competition, stimulate investment, improve service delivery and ensure telecommunications pricing structures adequately reflect current economic and operational realities.