The Nigerian Communications Commission (NCC) has commenced a review of interconnection rates for voice calls and SMS services, a move that could eventually lead to higher telecommunications charges for millions of mobile subscribers across the country.
The review comes eight years after the current Mobile Termination Rate (MTR) framework was introduced. Under the existing regime, telecom operators pay between N3.90 and N4.70 per minute for calls terminated on competing networks.
Speaking at the forum, NCC’s Head of Competition and Tariff Unit, Omotayo Mohammed, described the review as an important regulatory intervention aimed at ensuring telecom policies keep pace with developments in the industry.
She added that the commission would also assess existing retail pricing controls and asymmetry arrangements as part of efforts to balance industry sustainability with consumer protection.
If approved, the revised interconnection rates could have significant implications for telecom operators and subscribers alike, with industry stakeholders closely watching the outcome of the review process.
Also, speaking at a stakeholders’ consultative forum on the determination of MTR in Lagos, KPMG partner Wole Adenekan said the review had become necessary due to significant economic and technological changes that have transformed the telecommunications industry since 2018.
According to him, factors such as the depreciation of the naira, rising inflation, increased energy costs, and higher equipment expenses have significantly increased the operating costs of telecom companies.
He explained that setting interconnection rates too low could discourage investment in network infrastructure, while cost-reflective rates would promote efficiency, strengthen competition, and support long term industry growth.
“A mis-set MTR can enable dominant operators to foreclose smaller competitors through high termination barriers. A cost-reflective rate supports a level competitive playing field,” Adenekan said.
However, he cautioned that higher termination charges could ultimately be passed on to consumers through increased call and SMS tariffs.
Adenekan also highlighted the emergence of 5G technology, the growing adoption of Artificial Intelligence (AI) and the Internet of Things (IoT), as well as competition from internet-based communication platforms, as reasons the current framework requires updating.