The Nigerian Communications Commission (NCC) is undertaking a crucial review of Mobile Termination Rates (MTR), the first comprehensive reassessment of interconnection pricing since 2018. This initiative aims to ensure telecom tariffs remain relevant amid Nigeria’s rapidly advancing digital landscape.
MTRs are critical regulatory fees that telecommunications companies pay each other to enable calls across different networks, significantly impacting competition, investment, and pricing structures in the industry.
This initiative was officially announced during a stakeholder forum in Lagos, bringing together operators, regulators, and industry consultants. The NCC aims to reassess interconnection pricing in light of inflation, currency fluctuations, and changing consumer behaviour regarding network usage.
Omotayo Mohammed, the head of the Competition and Tariff Unit at the NCC, noted that the current rates of US$0.0026 per minute for established operators and US$0.0031 per minute for new entrants have not been updated since 2018 and do not reflect the current operational environment.
With the advent of 5G, AI technologies, and messaging platforms like WhatsApp and Telegram, traditional voice services have seen usage decline. Mohammed cautioned that outdated termination rates could hinder competition, deter investment, and ultimately increase consumer costs if not properly addressed.
To facilitate this review, the NCC has engaged KPMG to conduct a four-month study that will include consultations with stakeholders and analysis of industry costs, traffic patterns, and pricing models. The assessment will also examine associated areas, such as Unstructured Supplementary Service Data services, application-to-person messaging, international termination rates, and regulations governing mobile virtual network operators.
Wole Obayomi, a partner at KPMG, emphasised that the review will utilise a blend of industry data, international comparisons, and stakeholder feedback to create a pricing model that reflects current market conditions while ensuring investment protection and consumer benefits.
The NCC anticipates that the review will yield a revised interconnection framework, fostering enhanced competition, greater affordability, and long-term confidence in Nigeria’s telecommunications sector.
