The Nigerian Communications Commission (NCC) has begun a review of interconnection rates for voice calls and SMS services, a move that could impact telecom pricing and operating costs across the industry.
The review comes eight years after the current Mobile Termination Rate (MTR) framework was introduced, under which operators pay between N3.90 and N4.70 per minute for calls terminated on competing networks.
Speaking at a stakeholders’ consultative forum in Lagos, KPMG partner Wole Adenekan said the review had become necessary due to significant economic and technological changes since 2018, including naira depreciation, rising inflation, higher energy costs, and increased equipment expenses.
According to him, these factors have significantly altered telecom operators’ cost structures. He noted that rates set too low could discourage investment in infrastructure, while cost-reflective rates would promote efficiency, strengthen competition, and support economic growth.
Adenekan also warned that excessively high termination rates could ultimately be passed on to consumers through increased retail charges. He added that developments such as 5G deployment, the rise of artificial intelligence (AI), Internet of Things (IoT) technologies, and growing competition from Over-the-Top (OTT) platforms have made the current framework less suitable for today’s market realities.
In her remarks, NCC’s Head of Competition and Tariff Unit, Omotayo Mohammed, described the review as an important regulatory intervention aimed at aligning industry rules with rapid technological and market changes. She added that the commission would also assess existing retail price controls and asymmetry arrangements to safeguard competition and protect consumer interests.
Elijah Adeyemi
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