Operators seek protection for smaller telecom firms in NCC’s MTR review

Operators seek protection for smaller telecom firms in NCC’s MTR review

Telecommunications operators have urged the Nigerian Communications Commission (NCC) to seek protection for smaller operators as it reviews Nigeria’s Mobile Termination Rate (MTR) regime.

They made the call on Tuesday at the NCC MTR stakeholders’ consultative forum in Lagos.

Mr Tony Emoekpere, Chairman of the Association of Telecommunications Companies of Nigeria (ATCON), said smaller operators and new entrants with less than 10 per cent market share would require continued regulatory support to remain competitive.

“To ensure the participation and sustainability of new entrants and smaller telecom operators with less than 10 per cent market share, we respectfully recommend the retention of the current structure of asymmetric Mobile Termination Rates,” he said.

Emoekpere, who was represented by Chidi Ibisi, Chief Marketing Officer at BroadBased, noted that operators were contending with high interest rates, foreign exchange volatility, inflation, rising diesel costs, fibre cuts, vandalism, multiple taxation and right-of-way charges.

According to him, the challenges have significantly increased capital and operational costs across the industry.

He said telecom operators planned to invest more than 1.38 billion dollars this year in network upgrades, improved coverage, resilience and quality of service.

Also speaking, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Mr Gbenga Adebayo, stressed the need for a cost-reflective pricing framework capable of supporting continued investment in the sector.

Adebayo said operators invested about N2.13 trillion in network infrastructure in 2025 and planned an additional N1.86 trillion capital expenditure in 2026.

“The issue of Mobile Termination Rates remains fundamental to the health, sustainability and competitiveness of our industry.

“It is important that any review of these rates is guided by current market realities and the broader objective of ensuring a sustainable ecosystem,” he said.

According to him, operators are investing heavily in network expansion, cybersecurity, technology upgrades, energy infrastructure and rural connectivity.

Read Also: Customs maintain winning start in Premier Volleyball League

Responding to stakeholders, Mr Oluwole Adelokun, Partner, Strategy and Customer Solutions at KPMG Nigeria, said the review would consider submissions from all relevant industry players, including Value Added Service (VAS) providers and operators.

He said stakeholder recommendations on benchmark markets, regional cost variations and participation by additional industry groups would be incorporated into the study process.

Adelokun also addressed concerns over the growing use of internet-based communication platforms such as WhatsApp and Telegram.

“To the best of my knowledge, it is not regulated. However, one of the objectives of the study is to understand what is happening in other markets and determine whether there are regulatory approaches that can provide useful insights,” he said.

According to him, the study will examine international practices relating to Over-The-Top (OTT) communication services and their impact on traditional telecom revenue streams.

Adelokun added that operators’ data borrowing services were largely commercial initiatives designed to improve customer experience and retain subscribers rather than direct regulatory interventions.

He said the review by NCC would extend beyond mobile voice termination rates to cover international termination rates, USSD pricing, Application-to-Person (A2P) SMS services, Mobile Virtual Network Operator (MVNO) interconnection arrangements and retail voice price controls.

He said the exercise became necessary because domestic MTR rates had remained unchanged since 2018 despite inflation, exchange-rate volatility, rising energy costs and major technological developments.

Also, Assistant Director, Policy Competition and Economic Analysis at NCC, Ms Nkechi Araka, said the review would provide an opportunity to ensure that regulatory frameworks remained aligned with current market realities.

“A cost-based MTR supports a level playing field, promotes investment and ensures consumers continue to enjoy affordable and reliable services,” she said.