NCC commences review of mobile termination rates to meet economic realities
The Nigerian Communications Commission (NCC) has begun a review of Mobile Termination Rates (MTR), marking its first major reassessment since 2018, as it seeks to align telecom pricing with current economic and industry realities.
At a stakeholders’ consultative forum, NCC officials said the sector has changed significantly over the past eight years due to the rollout of 5G, rapid growth of OTT platforms, the emergence of Mobile Virtual Network Operators (MVNOs), shifting consumer expectations, and persistent inflation and foreign exchange volatility. These factors, they noted, have materially altered operators’ cost structures and made the existing ₦3.90 per minute MTR increasingly outdated. The Commission stressed that the review aims to establish a cost-reflective, fair and competitive interconnection framework that supports investment while ensuring affordable services for consumers.
Key objectives of the exercise include reassessing interconnection arrangements, reviewing wholesale and retail pricing structures, updating asymmetry rules for smaller operators, and setting new benchmarks for domestic and international termination rates. The NCC also said the process will involve broad stakeholder engagement, data collection, and publication of interim findings before a final framework is adopted.
Industry stakeholders largely backed the review. The ALTON said the exercise is critical to sector sustainability, noting that operators face rising operational costs but have still committed trillions of naira in recent and planned investments to expand networks, improve cybersecurity, and strengthen rural connectivity.
However, the ATCON urged the regulator to retain the current asymmetric MTR structure, arguing it remains essential for protecting smaller operators and sustaining competition in a market dominated by larger players. ATCON also highlighted macroeconomic pressures such as high interest rates, inflation, forex instability, multiple taxation, and infrastructure damage.
The consulting firm KPMG, which is leading the technical study, said the review will rely on international benchmarking and a forward-looking cost model. Its findings will guide recommendations for a revised pricing framework designed to ensure efficiency, competitiveness, and long-term sector growth.
Overall, stakeholders agree the review could reshape Nigeria’s telecom interconnection landscape, balancing affordability for consumers with sustainability for operators.
By Charles Kalu
