NCC begins review of mobile termination rates, seeks industry input

The Nigerian Communications Commission (NCC) has commenced a consultancy study for the determination of Mobile Termination Rates (MTR) in Nigeria, describing the exercise as a critical intervention aimed at aligning telecommunications regulation with evolving market realities.

Speaking at the Stakeholders’ Consultative Forum on the Determination of Mobile Termination Rates in Nigeria, the Head of the Competition and Tariff Unit, Policy, Competition and Economic Analysis Department of the NCC, said the exercise marked “another important milestone in our collective efforts to foster an inclusive, transparent, and dynamic telecommunications sector in Nigeria.”

The official said the forum was convened to formally engage stakeholders on the consultancy study and present its methodology, approach and timelines as the commission begins the data-gathering phase.

According to the NCC, the review extends beyond routine regulatory obligations.

“This exercise extends well beyond routine regulatory compliance; it constitutes a significant economic intervention intended to align our frameworks with the rapid pace of change in the telecoms sector,” the official said.

The commission noted that Nigeria’s current interconnection rate regime was established through the Interconnection Rate Determination issued on June 1, 2018, with a subsequent amendment to the Mobile International Termination Rate in September 2022.

It explained that since then, the telecommunications industry has witnessed significant changes, including rapid market expansion, deployment of 5G technology, the entry of Mobile Virtual Network Operators (MVNOs), and major shifts in macroeconomic conditions.

“The Nigerian telecommunications market has undergone considerable transformation, reflected in swift expansion, shifting market dynamics, the commercial deployment of advanced technologies such as 5G, and the emergence of new ecosystem players including Mobile Virtual Network Operators,” the official stated.

The NCC also cited changes in exchange rate regimes and inflation as factors that have significantly altered the cost of providing telecommunications services in the country.

“For regulation to remain effective in a fast-moving market, our frameworks must evolve in step with it,” the official said, adding that the commission was acting in line with Section 108 of the Nigerian Communications Act 2003 to ensure tariffs remain “reasonable, cost-reflective, and non-discriminatory.”

The commission said the consultancy study is built around three core objectives: developing an updated cost model for national and international termination rates, reviewing retail price controls and asymmetry arrangements to protect consumers, and creating a sustainable framework for integrating emerging operators such as MVNOs into national networks.

The NCC emphasized that the success of the exercise would depend on the quality of information supplied by operators and other stakeholders.

“The success of this study depends entirely on the accuracy and completeness of the data that underpins it. It is worth reiterating that no regulatory cost model can be effective without relevant and credible input from operators,” the official said.

The commission disclosed that consultants from KPMG would work closely with stakeholders over the coming weeks through a data collection exercise to ensure the study is based on accurate industry data.

Calling for cooperation from industry players, the NCC urged operators to participate actively in the process.

“Let us approach this exercise as a shared commitment to building a resilient, competitive, and investment-friendly ecosystem that supports the long-term growth of our entire industry,” the official said.

The commission added that contributions from stakeholders would be documented and used to refine the study as it progresses toward the development of a new mobile termination rate framework for Nigeria.