By Jennete Ugo Anya
The Nigerian Communications Commission (NCC) has begun a fresh review of Mobile Termination Rates (MTR), in a move aimed at aligning interconnection charges with evolving market conditions in the telecommunications sector.
The review forms part of broader regulatory efforts to ensure that pricing structures within Nigeria’s telecoms industry remain cost-reflective, competitive and responsive to economic realities.
Speaking at a Stakeholder Consultative Forum on the consultancy study for the determination of mobile termination rates, Omotayo Mohammed, Head of Competition and Tariff at the NCC, said the exercise is necessary to update the regulatory framework in line with recent industry and macroeconomic developments.
She explained that the review will examine existing national and international termination rates, assess retail price controls and asymmetry arrangements, and develop a framework that accommodates emerging operators within the telecommunications ecosystem.
The current interconnection rate regime was established under the Commission’s Interconnection Rate Determination issued in 2018 and later adjusted in 2022 for mobile international termination rates. However, officials say significant changes in the industry since then have made a reassessment necessary.
According to Mohammed, the telecommunications landscape has evolved considerably over the past few years, driven by network expansion, rapid technological advancement and increased market participation. These include the deployment of 5G networks and the entry of Mobile Virtual Network Operators (MVNOs), which are gradually reshaping competition dynamics in the sector.
She also pointed to wider economic pressures affecting the cost structure of telecom operations. Exchange rate volatility and inflation, she said, have significantly increased operational costs for service providers, making periodic reviews essential to maintain balance within the system.
“The years since our 2018 determination have been marked by unprecedented and rapid changes. Changes in exchange rate regimes and inflation rates have substantially altered the cost structures associated with providing communication services in Nigeria,” she said.
Mohammed noted that the review is being carried out under Section 108 of the Nigerian Communications Act 2003, which empowers the regulator to ensure that tariffs and charges remain fair, reasonable and non-discriminatory.
The study will focus on three key areas. First, it will develop an updated cost model for national and international termination rates that reflects current macroeconomic conditions and technological realities, including the rollout of 5G networks. Second, it will review retail pricing regulations and asymmetry arrangements to ensure consumer protection and market stability. Third, it will design a framework to support the integration and interconnection of emerging operators such as MVNOs.
To support the exercise, the Commission has engaged global consulting firm KPMG to conduct the study and coordinate data collection from operators across the sector. The process is expected to rely heavily on industry input to ensure that the final cost model accurately reflects operational realities.
Mohammed emphasised that the success of the review will depend on the quality and completeness of data provided by telecommunications operators, infrastructure providers and other licensed service operators.
She urged stakeholders to cooperate fully with the consultants by submitting timely and accurate information, noting that the outcome of the study will play a critical role in shaping future pricing structures and regulatory decisions in Nigeria’s telecom sector.
The review comes at a time when the industry is undergoing structural shifts driven by digital expansion, rising demand for data services and increasing pressure on operators to balance affordability with sustainability.
