Digitnomics 
By Admin,
The Nigerian Communications Commission (NCC) has commenced a comprehensive review of Mobile Termination Rates (MTR), marking the first reassessment of the framework since 2018 as the telecommunications industry grapples with changing economic realities and rapid technological evolution.
The review is expected to shape the future of wholesale telecom pricing, competition, infrastructure investment and digital service delivery across Nigeria’s telecommunications ecosystem.
Speaking during a stakeholder engagement forum in Lagos, the NCC’s Head of Competition and Tariff, Omotayo Mohammed, said the current MTR regime no longer reflects prevailing market conditions.
“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.
Mobile Termination Rates are the charges telecom operators pay one another for completing calls across networks. Although largely invisible to consumers, the rates influence retail pricing, operator revenues, network expansion and market competitiveness.
Nigeria currently maintains MTRs of N3.90 per minute for established operators and N4.70 per minute for new entrants, rates that have remained unchanged for eight years.
According to Mohammed, macroeconomic developments, including naira depreciation, rising inflation and increasing energy costs, have significantly altered the operating environment since the last review.
She also pointed to major technological shifts such as the rollout of 5G networks, Artificial Intelligence (AI)-enabled services and the growing adoption of Internet of Things (IoT) technologies, all of which have transformed traffic patterns and network utilisation.
Another factor driving the review is the growing dominance of Over-the-Top (OTT) communication platforms such as WhatsApp and Telegram, which now handle a significant share of voice and messaging traffic outside traditional telecom networks.
To ensure an evidence-based process, the NCC has engaged KPMG to conduct the cost study and stakeholder consultations over the next four months.
Beyond voice interconnection, the review will also assess pricing structures for Unstructured Supplementary Service Data (USSD) services and Application-to-Person (A2P) SMS, two segments that have become increasingly important for digital banking, fintech services and enterprise communications.
Mohammed disclosed that the study would establish a cost-reflective framework covering different technology generations, operator categories and clearing-house arrangements.
The exercise will also examine International Termination Rates (ITR) to address grey-route traffic concerns, develop pricing guidelines for Mobile Virtual Network Operators (MVNOs) and evaluate the effectiveness of the current asymmetric pricing structure between large operators and newer market entrants.
The NCC said the review is being undertaken under the provisions of the Nigerian Communications Act 2003, which mandates the commission to promote fair competition, encourage investment and protect consumer interests.
According to Mohammed, stakeholders will be given opportunities to review assumptions, validate data and contribute recommendations before any final determination is made.
Industry observers believe the outcome could have far-reaching implications for telecom operators, digital service providers, investors and consumers, particularly as Nigeria accelerates efforts to deepen broadband penetration and strengthen its digital economy.
Transparent and cost-reflective interconnection rates, she noted, would help operators recover rising capital and operational costs while encouraging continued investment in network infrastructure.
In her closing remarks, NCC Director of Public Affairs, Nnenna Ukoha, described the consultation as one of the commission’s most significant public engagements because of its impact on pricing, competition, service quality and consumer experience.
She commended stakeholders for their active participation and reiterated that the consultation window remains open for additional submissions and industry feedback.
As Nigeria’s telecommunications sector continues its transition toward a more data-centric and digitally connected future, the outcome of the MTR review is expected to play a critical role in shaping market dynamics and investment decisions in the years ahead.
