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By Chinenye Anuforo
The Nigerian Communications Commission (NCC) has commenced a comprehensive review of Mobile Termination Rates (MTR) eight years after the current rates were introduced, citing changing economic realities, technological advancements and shifts in telecommunications traffic patterns.
Speaking at a stakeholders’ engagement in Lagos on Tuesday, the Head of Competition and Tariff at the NCC, Mrs Omotayo Mohammed, said the review had become necessary because the existing rates no longer reflect prevailing operational and economic conditions in the telecommunications sector.
According to her, 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.
Mohammed noted that the telecommunications landscape has undergone significant changes over the years, driven by naira depreciation, rising inflation, escalating energy costs and evolving consumer behaviour.
“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.
She explained that the deployment of 5G networks, artificial intelligence (AI)-driven services and Internet of Things (IoT) applications has altered network usage patterns beyond what was envisaged in the 2018 cost model.
Mohammed further observed that over-the-top (OTT) platforms such as WhatsApp and Telegram now account for a significant share of voice and messaging traffic, reducing dependence on traditional interconnection services.
To drive the review process, the NCC has engaged KPMG as consultant for the study and stakeholder engagement exercise, which is expected to last four months.
The exercise will also examine issues relating to Unstructured Supplementary Service Data (USSD) services and application-to-person (A2P) short message service (SMS), both of which have become increasingly critical to Nigeria’s digital economy.
Mohammed stated that the review is being conducted in line with Sections 4, 96, 97 and 108 of the Nigerian Communications Act 2003, which empower the commission to promote investment, protect consumers and ensure fair competition.
She said the study would establish a cost-reflective MTR framework across different technology generations, operator categories and clearing house arrangements.
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The review will also cover international termination rates (ITR) to tackle grey-route traffic concerns, develop a pricing framework for mobile virtual network operators (MVNOs) and assess the current asymmetric rate structure between established operators and new entrants.
“The consultancy adopts an evidence-based and consultative approach. Stakeholders will have opportunities to submit their views and validate assumptions before any determination is made,” Mohammed assured.
She added that the review is expected to enhance retail affordability, improve access to digital financial services and enable operators to recover costs in line with prevailing capital and operational expenditure realities.
According to her, transparent and cost-reflective rates will encourage infrastructure investment and boost investor confidence in Nigeria’s digital economy.
Mohammed also assured stakeholders that the NCC would make its methodology, key assumptions and cost model parameters available throughout the process to ensure transparency and accountability.
In her remarks, the Director of Public Affairs at the NCC, Mrs Nnenna Ukoha, described the engagement as one of the commission’s most significant public consultations because of its far-reaching impact on the telecommunications value chain.
She noted that mobile termination rates remain central to pricing structures, competition, service quality and overall consumer experience.
“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,” Ukoha said.
She stressed that discussions at the forum highlighted both the challenges and opportunities associated with the MTR determination process and underscored the need for sustained stakeholder engagement.
Ukoha reiterated that the consultation window remains open and encouraged industry stakeholders to submit additional inputs, data and perspectives to support a balanced, forward-looking and sustainable outcome for the sector.
She reaffirmed the NCC’s commitment to collaboration and inclusive regulation aimed at building a resilient, competitive and future-ready telecommunications industry.
