Telecom Operators Seek Continued Protection for Smaller Firms in NCC MTR Review

 Telecom Operators Seek Continued Protection for Smaller Firms in NCC MTR Review

 

Telecommunications operators have called on the Nigerian Communications Commission (NCC) to maintain regulatory safeguards for smaller operators as it undertakes a review of the country's Mobile Termination Rate (MTR) framework.

The appeal was made on Tuesday during the NCC’s Mobile Termination Rate Stakeholders’ Consultative Forum held in Lagos.

Speaking at the event, Chairman of the Association of Telecommunications Companies of Nigeria (ATCON), Mr. Tony Emoekpere, stressed the importance of sustaining measures that support smaller operators and new entrants with less than 10 per cent market share.

Represented by Mr. Chidi Ibisi, Chief Marketing Officer of BroadBased Communications, Emoekpere urged the commission to retain the current asymmetric MTR structure, which offers competitive advantages to smaller operators.

“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.

He noted that operators continue to grapple with numerous challenges, including high interest rates, foreign exchange volatility, inflation, escalating diesel prices, fibre optic cable cuts, vandalism, multiple taxation, and right-of-way charges.

According to him, these challenges have significantly increased both capital and operational expenditures across the telecommunications sector.

Despite the constraints, Emoekpere disclosed that operators are expected to invest more than $1.38 billion in 2026 to enhance network capacity, improve coverage, strengthen resilience, and boost service quality.

Also speaking, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), Mr. Gbenga Adebayo, underscored the need for a cost-reflective pricing regime capable of sustaining investment and growth within the industry.

Adebayo revealed that telecom operators invested approximately N2.13 trillion in network infrastructure in 2025 and are projecting an additional capital expenditure of N1.86 trillion 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.

He added that operators are making substantial investments in network expansion, cybersecurity, technology upgrades, energy infrastructure, and rural connectivity.

Responding to stakeholders’ concerns, Mr. Oluwole Adelokun, Partner, Strategy and Customer Solutions at KPMG Nigeria, assured participants that all submissions would be considered during the review process.

He said the study would accommodate recommendations from stakeholders, including those relating to benchmark markets, regional cost variations, and broader participation by industry groups such as Value Added Service (VAS) providers.

Adelokun also addressed concerns about the growing influence of internet-based communication platforms such as WhatsApp and Telegram on telecom revenues.

“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.

He explained that the review would examine international regulatory approaches to Over-The-Top (OTT) communication services and assess their impact on traditional telecom business models.

According to him, the NCC review will extend beyond domestic mobile voice termination rates to include international termination rates, USSD pricing, Application-to-Person (A2P) SMS services, Mobile Virtual Network Operator (MVNO) interconnection arrangements, and retail voice price controls.

Adelokun noted that the exercise had become necessary because domestic MTR rates have remained unchanged since 2018 despite rising inflation, exchange-rate fluctuations, increasing energy costs, and significant technological advancements.

Earlier, NCC Assistant Director for Policy, Competition and Economic Analysis, Ms. Nkechi Araka, said the review presents an opportunity to align regulatory frameworks with evolving market conditions.

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

The review is expected to shape the future of interconnection pricing and competition within Nigeria’s telecommunications industry, while balancing the interests of operators, investors, and consumers.