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

Stories by Emma Okonji

The Nigerian Communications Commission (NCC) has commenced the review of the determination of Mobile Termination Rates (MTR) for the telecoms sector, a development that will shape the pricing model for voice communication.

The review will enable NCC to actualise its plans of releasing a new MTR structure for the telecoms sector in the next four months when the review is expected to be concluded by KPMG.

Speaking during a stakeholder consultative forum organised by NCC in Lagos, the Head, Competition and Tariff Unit at NCC, Omotayo Mohammed, said the forum would help to formally engage stakeholders on the consultancy study for the determination of Mobile Termination Rates (MTR) in Nigeria and to also present the study’s approach, methodology, and timelines for the data-gathering phase of the exercise.

“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,” Mohammed said.

Partner, Strategy & Customer Solutions at KPMG, Oluwole Adelokun, who spoke about the objectives, said: “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.”

The Chairman, Association of Licenced Telecoms Operators of Nigeria (ALTON), Gbenga Adebayo, said the review was necessary and well guided by current micro-realities, and commended NCC for its intervention in facilitating the planned review.