NCC revisits telecom pricing as 5G, inflation reshape Nigeria’s digital landscape.

The Nigerian Communications Commission (NCC) has commenced a review of Mobile Termination Rates (MTR), eight years after the last determination, saying developments in the telecommunications sector have rendered the 2018 framework outdated.

The regulator announced the initiative on Tuesday during a stakeholders’ consultative forum on MTR determination in Nigeria.
Why NCC Is Reviewing the Rates
Speaking at the forum, NCC’s Assistant Director of Policy, Competition and Economic Analysis, Mrs. Nkechi Araka, explained that the current rate of N3.90 per minute no longer reflects prevailing market conditions due to significant changes in the industry since 2018.
According to her, several factors have driven the need for a fresh review, including:
The deployment of 5G services and the emergence of Mobile Virtual Network Operators (MVNOs), which have altered network costs and interconnection dynamics.
The growing influence of over-the-top (OTT) platforms such as WhatsApp and Telegram on voice and SMS traffic.
Increased consumer expectations for affordable, high-quality and uninterrupted connectivity.
Rising operational costs resulting from inflation and exchange rate fluctuations.
Araka noted that the communications sector has evolved considerably since the last review and that the commission considers this the right time to reassess the framework.
She added that the eight-year gap between reviews is unusual, as MTRs are typically reviewed every three to four years. While international termination rates were reviewed in 2022, the domestic MTR has remained at N3.90 per minute.
What Mobile Termination Rates Mean
Mobile Termination Rate refers to the charge telecom operators pay one another for completing calls on another network.
The rate has implications for:
Interconnection efficiency among network operators.
Consumer pricing, as higher MTRs can influence call and SMS tariffs.
Competition and investment by ensuring operators recover the cost of providing termination services while maintaining a level playing field.
Araka stated that cost-based termination rates help prevent unfair competitive advantages and encourage continued investment in telecommunications infrastructure.
Scope of the Review
Backed by Sections 96, 97 and 108 of the Nigerian Communications Act 2003, the review will:
Evaluate the effectiveness of the current interconnection regime.
Develop an updated wholesale and retail pricing framework.
Determine cost-reflective MTRs for voice, SMS and USSD services.
Review the existing asymmetry regime that allows different rates for new entrants.
Establish appropriate international termination rates for inbound traffic.
Assess interconnection arrangements involving MVNOs and retail pricing controls.
Next Steps
The NCC said the exercise will be transparent and evidence-based. The process will involve stakeholder consultations, data gathering from operators, publication of interim findings for public feedback, and the eventual release of a proposed new MTR framework.
The commission expects the review to promote affordable and sustainable telecommunications services for consumers, provide regulatory certainty for operators, and encourage market entry as well as infrastructure investment.
Nigeria’s first interconnection determination was conducted in 2003, with subsequent reviews in 2006 and 2009 when asymmetry was introduced. The 2018 determination established the current uniform rate of N3.90 per minute.