₦airaland Forum

The Nigerian Communications Commission (NCC) has commenced a comprehensive review of interconnection rates for voice calls and SMS services among telecommunications operators, a move that could ultimately lead to increased communication costs for millions of subscribers across the country.

The review marks the first major reassessment of the Mobile Termination Rate (MTR) framework in eight years.

Under the current regime, telecom operators pay between ₦3.90 and ₦4.70 per minute for calls terminated on competing networks. Eyes Of Lagos reports,

Speaking at a stakeholders’ consultative forum on the determination of MTR held in Lagos, partner at KPMG, Wole Adenekan, said the review had become necessary due to major economic and technological changes that have affected the telecommunications industry since the existing framework was introduced in 2018.

According to Adenekan, several factors have significantly altered the cost structure of telecom operators, including the depreciation of the naira, persistent inflation, rising energy costs and increased expenses associated with network equipment and infrastructure.

He explained that maintaining artificially low termination rates could discourage investments in telecom infrastructure, while a pricing system that reflects actual operating costs would improve efficiency, encourage competition and contribute to economic growth.

“A mis-set MTR can enable dominant operators to foreclose smaller competitors through high termination barriers. A cost-reflective rate supports a level competitive playing field,” Adenekan said.

However, he warned that an increase in termination rates could eventually be passed on to consumers through higher retail charges, potentially increasing the cost of making calls and sending text messages.

He also pointed to the rapid rollout of 5G technology, the increasing adoption of Artificial Intelligence (AI) and Internet of Things (IoT) technologies, as well as competition from Over-the-Top (OTT) platforms such as internet-based messaging and calling services, as reasons why the current interconnection framework requires an update.

Also speaking at the forum, the NCC’s Head of Competition and Tariff Unit, Omotayo Mohammed, described the exercise as a critical regulatory intervention designed to ensure that telecom pricing structures reflect present-day market realities.

She stated that the commission would not only review interconnection rates but also assess retail price controls and asymmetry arrangements in a bid to strike a balance between consumer protection and market sustainability.

Industry analysts say the outcome of the review could have far-reaching implications for telecom operators, investors and subscribers, especially at a time when the sector is grappling with rising operational costs and increasing demand for digital services.

Although the NCC has not announced any new tariffs, stakeholders expect the review process to shape the future pricing framework for voice and SMS services in Nigeria.

For now, subscribers are expected to closely monitor the commission’s next steps as the industry awaits the outcome of the consultations.

Gigantiorji:
Always inflicting hardship on the poor masses,thank God for whatsapp

Amovingman:
Imagine 20 naira per second for calls

20 naira per SMS

But still tinubu till 2031

DMCA:
where u see 20 naira per second?

jubrilELsudan:
LIKE WHO CARES?

LIKE SEY WHATSAPP NO DEY

masterfactor:
This current government is making the BUHARI GOVERNMENT LOOK LIKE A SAINT.

THIS IS SHEGE PROMAX 2.0