NCC reviews Mobile Termination Rates after eight years

The Nigerian Communications Commission (NCC) will be carrying out a review of Mobile Termination Rates (MTR), which was last effected in 2018.

Speaking at a stakeholders’ engagement in Lagos, the Head of Competition and Tariff at the NCC, Mrs Omotayo Mohammed, said the review had become necessary because the existing rates no longer reflect current economic and operational realities in the telecommunications industry.

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Mobile Termination Rates are the charges telecommunications operators pay one another for completing calls across different networks. For instance, when a subscriber on one network places a call to a subscriber on another network, the originating operator pays the receiving operator a regulated fee for terminating the call.

According to her, the current MTR of N3.90 per minute for established operators and N4.70 per minute for new entrants has remained unchanged for eight years despite significant shifts in the operating environment.

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She explained that inflation, the depreciation of the naira, rising energy costs and increasing investments in network infrastructure have substantially altered the cost structure of telecommunications operators.

Mohammed also noted that rapid technological changes, including the rollout of 5G networks, Artificial Intelligence-driven services and Internet of Things applications, have transformed traffic patterns across telecom networks.

She added that the growing popularity of Over-the-Top (OTT) platforms such as WhatsApp and Telegram for voice and messaging services has reduced reliance on traditional interconnection services, creating new realities that were not envisaged when the current rates were determined.

“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.

Mohammed stated that the review is expected to produce a cost-reflective framework that promotes fair competition, supports investment and protects consumer interests.

The NCC has engaged KPMG to undertake the consultancy and stakeholder engagement process, which is expected to last four months.

A Partner at KPMG, Mr Wole Adelokun, assured stakeholders that the study would be evidence-based, transparent and driven by extensive consultations with operators and other industry participants.

According to Adelokun, stakeholders will have opportunities to review assumptions, validate data and contribute inputs before any final determination is made.

“The objective is to develop a framework that reflects market realities while supporting sustainable industry growth,” he said.

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

Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Mr Gbenga Adebayo, described the review as critical to the long-term sustainability of the telecommunications sector.

Adebayo noted that operators have faced increasing pressure from inflation, foreign exchange volatility, energy costs and growing network expansion requirements.

He said a cost-reflective interconnection regime is essential to maintaining investment in infrastructure and ensuring quality service delivery.

According to him, the industry has continued to commit significant resources to network expansion despite economic challenges, with operators planning substantial investments in infrastructure upgrades and service improvement initiatives.

The ALTON chairman stressed that regulatory frameworks must evolve alongside technological developments and changing consumer behaviour to sustain industry growth and competitiveness.

In her closing remarks, the Director of Public Affairs at the NCC, Mrs Nnenna Ukoha, described the consultation as one of the commission’s most important stakeholder engagements because of its implications for competition, service quality, pricing and consumer experience across the telecommunications value chain.

She urged stakeholders to take advantage of the consultation window to submit additional data, perspectives and recommendations that would support a balanced, transparent and sustainable outcome.

The NCC said the review is expected to strengthen competition, encourage investment, improve service delivery and ensure telecommunications pricing structures reflect present-day economic and operational realities.

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