Nigeria’s telecommunications regulator has commenced a sweeping reassessment of the framework governing inter-network call charges, marking the most extensive industry evaluation in almost ten years.
The exercise, being carried out by the Nigerian Communications Commission (NCC) in collaboration with advisory firm KPMG, was formally unveiled at a stakeholders’ meeting in Lagos.
The initiative is expected to influence competition, network expansion, and the overall economics of the country’s communications sector.
Central to the exercise is the examination of Mobile Termination Rates (MTRs), the fees operators pay each other for completing calls between different networks.
These charges play a significant role in shaping business operations and consumer costs across the industry.
According to the commission, the existing structure, introduced in 2018 and slightly adjusted in 2022, no longer reflects the realities of a rapidly evolving market.
The sector has undergone significant transformation, driven by the rollout of fifth-generation (5G) technology, growing demand for data services, and the emergence of Mobile Virtual Network Operators (MVNOs), whose business models differ from those of traditional network providers.
The regulator also pointed to mounting economic pressures affecting telecommunications companies. Rising inflation, foreign exchange volatility, and escalating operating expenses have significantly increased the cost of maintaining network infrastructure, much of which depends on imported equipment and services.
To address these developments, KPMG will undertake an extensive assessment involving industry consultations, financial analysis, and comparisons with international markets.
The objective is to determine whether the current framework remains fit for purpose and to identify areas requiring policy adjustments.
As part of the process, operators have been directed to provide detailed information covering revenue performance, operational expenditure, profitability, market positioning, capital spending, and customer usage patterns.
The data will help establish a clearer picture of industry trends and the impact of existing regulations on various market participants.
The engagement will involve discussions with a broad range of stakeholders, including mobile network operators, virtual service providers, international carriers, interconnect exchanges, and clearing houses. Their commercial, technical, and financial perspectives are expected to contribute to the development of a more balanced regulatory structure.
In addition, Nigeria’s telecommunications environment will be measured against comparable markets in Africa and Asia, including South Africa, Kenya, Indonesia, and Malaysia, to ensure alignment with global best practices.
The commission said the ultimate objective is to create a transparent and sustainable framework that supports continued investment in digital infrastructure while safeguarding consumer interests. Through extensive industry participation, regulators hope to establish a system that promotes innovation, strengthens competition, and ensures long-term sector growth.
Officials have urged all stakeholders to comply with submission deadlines, stressing that timely and accurate information will be critical to shaping the future regulatory landscape.
