The Nigerian Communications Commission (NCC) has said that it would focus more attention on the interconnection activities among the telecom operators in the country.
This came as the telecom regulator announced that Globacom and MTN have now resolved the interconnect debt issue over which Globacom was issued a pre-disconnection notice a month ago. To avoid a situation where telecom operators will continue to owe one another, NCC said it would henceforth request regular updates of interconnect settlements from all the operators.
Without the resolution of the issue based on the regulator’s intervention, about 65 million Globacom customers would have been disconnected from MTN, which would have created a chaotic situation in the industry.
No more disconnection
Announcing the resolution of the debt debacle by the two operators, NCC in a statement signed by its Director of Public Affairs, Reuben Muoka, said:
- “The Nigerian Communications Commission (NCC) is pleased to announce that the interconnect debt dispute between MTN Nigeria Communications Plc. (MTN) and Globacom Limited (Globacom) has been amicably resolved.
- “Following this resolution, the disconnection approval granted to MTN for the disconnection of Globacom has now been withdrawn. Following its initial Public Notice, the Commission to mitigate any potential disruptions to subscribers undertook further regulatory intervention, by mediating between the parties and facilitating the reconciliation process.
- “The Commission reiterates that strict adherence to the terms and conditions of licenses, particularly those delineated in interconnection agreements, is imperative for all Mobile Network Operators (MNOs) and other licensees within the telecommunications industry.
- “To proactively address and prevent future instances of interconnect indebtedness within the industry, the Commission will be requesting relevant records and regular updates from MNOs, as well as adopting a transparent approach towards industry indebtedness. This statement serves as a reminder of the Commission’s commitment to fostering a stable and compliant telecommunications ecosystem 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.
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.