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🇳🇬 Nigeria /Economy & Trade

NCC Plans New Mobile Termination Rates for Telecoms, Gets Industry Nod

From ThisDay · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • The Nigerian Communications Commission (NCC) is reviewing Mobile Termination Rates (MTR) to update voice call pricing models.
  • A consultancy study by KPMG is expected to conclude within four months, assessing the current interconnection regime and developing a new regulatory framework.
  • Industry stakeholders, including ALTON, support the review, recognizing the need to adjust pricing based on current economic realities like exchange rate fluctuations and inflation.

The Nigerian Communications Commission (NCC) has initiated a review of Mobile Termination Rates (MTR), a crucial step that will influence the pricing of voice communication in the country's telecommunications sector. This review is anticipated to result in a new MTR structure within the next four months, following a consultancy study conducted by KPMG.

Changes in exchange rate regimes, and inflation rates have substantially altered the cost structures associated with providing communications services in Nigeria. For regulation to remain effective in a fast-moving market, our frameworks must evolve in step with it.

— Omotayo MohammedHead, Competition and Tariff Unit at NCC, explaining the need for the MTR review.

At a stakeholder consultative forum in Lagos, Omotayo Mohammed, Head of Competition and Tariff Unit at NCC, explained that the forum aimed to formally engage stakeholders on the consultancy's approach, methodology, and timelines for data gathering. Mohammed emphasized the need for regulatory frameworks to evolve alongside market changes, noting that shifts in exchange rates and inflation have significantly altered the cost structures for providing communication services in Nigeria.

KPMG's Partner for Strategy & Customer Solutions, Oluwole Adelokun, outlined the study's five objectives. These include assessing the impact of the current interconnection regime from 2018 to the present and developing an updated regulatory framework for both wholesale and retail pricing of telecommunications components.

We have five objectives of the study. The first is to carry out an impact assessment of the current interconnection regime, and review what has happened between 2018 and now. Then, we intend to develop an updated regulatory framework for wholesale and retail pricing of the components.

— Oluwole AdelokunPartner, Strategy & Customer Solutions at KPMG, detailing the consultancy study's objectives.

Industry players have welcomed the initiative. Gbenga Adebayo, Chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON), described the review as necessary and well-guided by current micro-economic realities. He commended the NCC's intervention in facilitating this planned review, acknowledging its importance for the sector's stability and growth.

The review was necessary and well guided by current micro-realities, and commended NCC for its intervention in facilitating the planned review.

— Gbenga AdebayoChairman, Association of Licenced Telecoms Operators of Nigeria (ALTON), commenting on the MTR review.
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Originally published by ThisDay. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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