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The Nigerian Communications Commission (NCC) has begun a comprehensive review of Mobile Termination Rates (MTRs), eight years after the current rates were introduced in 2018.
Mrs. Omotayo Mohammed, Head of Competition and Tariff at the NCC, announced the review on Tuesday in Lagos while presenting a consultancy document outlining the process.
Mobile Termination Rates are the wholesale per‑minute charges that one telecom operator pays to another to complete a call on a competitor’s network. They represent the fees charged by mobile operators to connect a call originating from a different network.
In Nigeria, the NCC sets these regulated rates to manage competition and ensure fair pricing across networks.
Mohammed said the review was necessary because the existing rates no longer reflected the prevailing economic and operational realities of the telecommunications industry.
“The foundation of wholesale interconnection affects every stakeholder in this room. Misaligned termination rates can enable dominant operators to foreclose smaller competitors, deter infrastructure investment and ultimately burden consumers through inflated retail prices,” she said.
The current MTR stands at N3.90 per minute for generic operators and N4.70 per minute for new entrants—rates that have remained unchanged since 2018.
She noted that significant changes in the economy, including naira depreciation, rising inflation and increasing energy costs, have altered operators’ cost structures over the years.
Mohammed also highlighted technological advancements—particularly the deployment of 5G networks, AI‑driven services and Internet of Things (IoT) applications—which have changed network usage patterns beyond what was envisaged in the 2018 cost model.
She added that Over‑the‑Top (OTT) platforms such as WhatsApp and Telegram are increasingly handling voice and messaging traffic, thereby reducing reliance on traditional interconnection services.
The commission has engaged KPMG to conduct the consultancy and stakeholder engagement process, which is expected to last four months.
The study will address issues related to Unstructured Supplementary Service Data (USSD) services and Application‑to‑Person (A2P) Short Message Service (SMS), both of which have become increasingly important in the digital economy.
Mohammed said the review is being carried out in line with Sections 4, 96, 97 and 108 of the Nigerian Communications Act 2003, which mandate the commission to promote investment, protect consumers and ensure fair competition.
The study will provide a cost‑reflective MTR framework across different technology generations, operator categories and clearing house arrangements. It will also review International Termination Rates (ITR) to address grey‑route traffic concerns, establish a pricing framework for Mobile Virtual Network Operators (MVNOs), and assess the current asymmetric rate structure between large and new entrant operators.
She said the review is expected to support retail affordability, improve access to digital financial services and enable operators to recover costs in line with current capital and operational expenditure realities.
Transparent and cost‑reflective rates, she added, would encourage infrastructure investment and enhance investor confidence in Nigeria’s digital economy.
Mohammed assured stakeholders that the NCC would make its methodology, key assumptions and cost model parameters available for review throughout the process to ensure transparency.
In her closing remarks, Mrs. Nnenna Ukoha, Director of Public Affairs at the NCC, described the forum as one of the commission’s most important public‑facing engagements because of its impact on the entire telecommunications value chain.
Ukoha said Mobile Termination Rates remain central to pricing structures, competition, service quality and consumer experience, making broad stakeholder participation essential to the determination process.
“We are particularly encouraged by the rapt attention, intellectual rigour and keen interest demonstrated by participants throughout today’s session. This active engagement reflects not only the relevance of the issues discussed but also a shared commitment to the sustainable growth and development of Nigeria’s telecommunications sector,” she said.
According to Ukoha, the presentations and discussions highlight both the complexities and opportunities in the MTR determination process and underscore the need for continuous stakeholder engagement.
She reiterated that the window for consultation remains open and encouraged stakeholders to submit additional inputs, data and perspectives to support a balanced, forward‑looking and sustainable outcome for the industry.
Ukoha assured stakeholders that the commission would continue to embrace collaboration and incorporate stakeholder feedback into its regulatory frameworks while working toward a resilient, inclusive and future‑ready telecommunications sector.
The post NCC begins review of mobile termination rates after eight years appeared first on Vanguard News.
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