• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macros
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macros
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
Nairametrics
No Result
View All Result
Home Business News
Telecom operators incurred ₦60 billion interconnect debt

Telecom operators incurred ₦60 billion interconnect debt

Fikayo Owoeye by Fikayo Owoeye
6 years ago
in Business News, Company News
Share on FacebookShare on TwitterShare on Linkedin

The Chairman, Nigerian Communications Commission NCC Sen. Olabiyi Durojaiye has expressed concerns over the huge interconnect debt among network carriers in the country which verified reports puts at ₦60 billion. Warning that this poses a potential danger to the success the industry has witnessed in recent years.

What is interconnect debt

This is a cost that is incurred by network operators during the termination of services rendered to it by another operator in the industry.

Interconnection enables a user to experience the smoothness of a connected network, hence, a subscriber does not need to know whether the person at the other end of the network subscribes to another network operator.

Why this high rate of indebtedness

According to a former Acting Executive Vice Chairman, Stephen Bello, the high rate of indebtedness in the telecoms industry can be attributed to

  • Poor corporate management
  • Diversion of telecoms revenue to other private investment in other sectors
  • Poorly drafted interconnection agreement between operators.

While noting that this interconnection indebtedness will slow down government’s socio-economic agenda on the expansion of networks spread and quality of service for subscribers.

In his words:

“This interconnect indebtedness has the effect of introducing inefficiency into the telecoms industry and the entire national economy, unfair treatment of interconnecting partners will prevent subscribers from having values for their money”

While operators in the industry have continued to trade blames over the debt incurred with some alleging the inflation of figures which they attribute to the faulty billing system of their competitor others lament that the debt are owned by clearing houses.

The clearing house receives, validates and accounts for telephone bills for several service provider. They are particularly important for international billing as they convert different data record format that are used by service providers and convert for the currency exchange rate.

Way Forward

The regulatory agency, NCC has recently launched the Corporate Governance Code which is expected to address non compliance with the Telecommunication Networks Interconnection Regulations and other  unethical practice by operators in the industry. NCC must ensure adequate monitoring of operators in the industry in line with this new Governance Code.

President, Association of Telecommunications Companies of Nigeria, ATCON, Mr. Olusola Teniola believes the commission must ensure that each operator puts in place an automated robust system that can reconcile the interconnect debt situation. The regulator needs to force operators to pass traffic through interconnect clearing houses for accountability in the billing system.


Download Nairametrics App for breaking news and market intelligence.
   
Tags: Nigerian Communications Commission (NCC)Stephen Bello
Fikayo Owoeye

Fikayo Owoeye

Fikayo has a degree in computer science with economics from Obafemi Awolowo University. ITIL v3 in IT service management. An alumnus of Daystar Leadership Academy. Prior to joining Nairametrics had stinct in Project management, Telecommunications among others. Also training in Consulting and Investment banking from Edubridge Academy. He has very keen interest in Politics, Agri-business, private equity and global economics. He loves travelling and watching football. You can contact him via fikayo.owoeye@nairametrics.com

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *







NM newsletters
HFM
Glo
Kwakol
Abbey
Zenth Bank
UBA
Mega Millions

Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

Recent News

  • WHO raises alarm over escalating tuberculosis infections in Borno
  • Nigeria records 226 crude oil theft incidents in one week – NNPCL
  • AcelorMittal to layoff 3500 South African workers as Steel demand falls

Follow us on social media:

Recent News

WHO , human rights ,pregnant women, HRP

WHO raises alarm over escalating tuberculosis infections in Borno

November 28, 2023
Crude oil theft

Nigeria records 226 crude oil theft incidents in one week – NNPCL

November 28, 2023
  • Download Nairametrics iOS App
  • Download Nairametrics Android App
  • Contact Us
  • Home
  • Markets
  • Industries
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer

© 2023 Nairametrics

No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macros
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
  • Login
  • Sign Up

© 2023 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In