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NCC asks MTN to disconnect Globacom over interconnect debt

NCC,

The Nigerian Communications Commission (NCC) has approved a partial disconnection of Globacom by MTN over the former’s refusal to pay interconnect debt.  

The partial disconnection means that Globacom’s subscribers will not be able to make calls to any MTN number. However, Glo customers can receive inbound calls from MTN customers.  

The NCC disclosed this in a public notice issued on Monday. According to the telecom regulator, Globacom has been given a 10-day notice starting from January 8, after which the disconnection will be implemented. 

What the NCC is saying 

The Commission in a public notice to inform Globacom’s subscribers of the development said:  

The interconnect debt debacle 

This development is coming as the first bold move by the telecom regulator to address the problem of interconnect debt that has been plaguing the Nigerian telecom industry for years.  

As of 2020, the immediate past Executive Vice Chairman of the NCC, Prof Umar Danbatta, put the interconnect debt figure at over N70 billion, noting that this has been threatening the operators’ capacity to expand their infrastructure for better quality service. 

Danbatta had described the interconnect debt as “a big challenge to infrastructure expansion and inimical to healthy competition” which are needed for facilitating the digital economy in Nigeria. 

What you should know 

Interconnect rate is the price that telecommunications operators pay each other for calls terminating on their networks.

If a call originates from network A, for instance, and ends on network B, what A pays B for terminating the call is the interconnect rate. However, operators have failed to settle this cost over the years and the debt continues to pile up. 

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