The Nigerian Communications Commission (NCC) has commenced a review of interconnection rates for telecom operators’ voice call and SMS services, marking the first such assessment in eight years.
Interconnection rates, also known as Mobile Termination Rates (MTR), are charges paid by one telecommunications network to another when a subscriber makes a call that terminates on a different network. These rates play a key role in enabling communication between users across various mobile networks.
The current rates stand at N3.90 and N4.70 per minute, depending on the service category. Industry observers note that any upward adjustment could eventually lead to higher call and SMS costs for consumers.
During a stakeholder consultation in Lagos, telecommunications experts highlighted the need for rates that accurately reflect the cost of delivering services. They argued that cost-based pricing encourages infrastructure development, supports fair competition among operators, and contributes positively to economic growth.
Experts also pointed to major changes in the industry since the last review in 2018, including naira depreciation, rising inflation, increased energy and equipment costs, the rollout of 5G technology, and the growing adoption of artificial intelligence and Internet of Things (IoT) services. These developments, they said, have significantly altered operators’ cost structures.
Additionally, the increasing popularity of internet-based communication platforms has reduced dependence on traditional voice and messaging services, affecting wholesale telecom revenues and further strengthening the case for a review.
The NCC stated that the exercise is aimed at ensuring telecom pricing frameworks remain relevant amid evolving market conditions. The commission said it will also assess existing retail pricing controls and competitive measures to protect consumer interests while maintaining a balanced and sustainable telecommunications sector.
According to the regulator, Nigeria’s telecom industry has experienced significant transformation over the past several years, driven by technological advancements, changing market dynamics, and economic shifts. The review is intended to ensure that tariffs remain fair, cost-reflective, and aligned with current industry realities.
