The Nigerian Communications Commission (NCC) has initiated a major review of Mobile Termination Rates (MTRs), marking the first reassessment of the charges since the current framework was introduced in 2018.
When speaking in Lagos on Tuesday during the presentation of a consultancy document outlining the review process, the NCC’s Head of Competition and Tariff, Mrs. Omotayo Mohammed, said the exercise had become necessary due to significant changes in the telecommunications landscape and broader economy.
Mobile Termination Rates are wholesale charges paid by one telecom operator to another for completing calls on a rival network. The NCC regulates these rates to promote fair competition and ensure balanced pricing across the industry.
According to Mohammed, the existing rates N3.90 per minute for established operators and N4.70 per minute for new entrants have remained unchanged for eight years despite substantial shifts in operating conditions.
She noted that factors such as the depreciation of the naira, rising inflation, and escalating energy costs have significantly increased operators’ expenses, making the current rates less reflective of actual market realities.
“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.
Mohammed also highlighted the impact of technological advancements, including the rollout of 5G networks, Artificial Intelligence-powered services, and Internet of Things (IoT) applications, all of which have transformed network usage patterns beyond the assumptions of the 2018 cost model.
In addition, she pointed to the growing popularity of Over-the-Top (OTT) platforms such as WhatsApp and Telegram, which increasingly carry voice and messaging traffic that previously relied on traditional telecom interconnection services.
To support the review, the NCC has engaged KPMG to conduct the consultancy and stakeholder engagement process, which is expected to run for four months.
The study will examine issues related to Unstructured Supplementary Service Data (USSD) services and Application-to-Person (A2P) SMS, both of which have become increasingly critical to Nigeria’s expanding digital economy.
Mohammed explained that the review is being undertaken in accordance with Sections 4, 96, 97 and 108 of the Nigerian Communications Act 2003, which empower the commission to encourage investment, safeguard consumers, and maintain healthy competition within the sector.
The exercise is expected to produce a cost-reflective MTR framework that accounts for different technology generations, operator classifications, and clearing house arrangements.
It will also evaluate International Termination Rates (ITRs) to address concerns around grey-route traffic, establish pricing guidelines for Mobile Virtual Network Operators (MVNOs), and assess the current asymmetrical rate structure between larger 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 stated.
She added that the outcome of the review could improve retail affordability, expand access to digital financial services, and enable operators to recover costs more effectively in line with present-day capital and operational expenditure realities.
According to her, transparent and cost-reflective pricing will encourage further investment in telecommunications infrastructure while strengthening investor confidence in Nigeria’s digital economy.
Mohammed assured stakeholders that the commission would maintain transparency throughout the process by making its methodology, key assumptions, and cost model parameters available for scrutiny.
In her closing remarks, NCC’s Director of Public Affairs, Mrs. Nnenna Ukoha, described the engagement as one of the commission’s most significant public consultations because of its far-reaching implications for the telecommunications value chain.
She stressed that Mobile Termination Rates remain central to industry pricing, competition, service quality, and overall consumer experience, making active stakeholder participation crucial to the review 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.
Ukoha noted that discussions during the forum underscored both the opportunities and complexities associated with determining future MTRs and highlighted the importance of continued stakeholder engagement.
She reiterated that consultations remain open and encouraged industry participants to provide additional data, insights, and recommendations to support a balanced, sustainable, and forward-looking outcome.
The NCC, she added, will continue to embrace collaboration and incorporate stakeholder feedback into its regulatory decisions as it works toward building a resilient, inclusive, and future-ready telecommunications industry.
