The Nigerian Communications Commission, working with consultancy KPMG, has begun a comprehensive review of telecom interconnection pricing, the first major reassessment of the sector’s tariff framework in nearly a decade. The exercise, kicked off in Lagos at a mobile termination rate stakeholder forum on Tuesday, brought regulators, operators and industry participants into a structured process to reassess wholesale pricing rules that govern payments between networks for completing voice calls.
Mobile Termination Rates are regulated fees paid by one operator to another to complete calls across networks. They influence competition, investment, and retail pricing. The telecom regulator said the current framework, last set in 2018 and adjusted in 2022, has been overtaken by structural changes in the market, including the rollout of 5G, the expansion of data-led services, and the entry of mobile virtual network operators.
It also cited macroeconomic pressure, including currency depreciation and inflation, which have significantly altered operators’ cost bases. The Head of the Competition and Tariff Unit at the NCC, Omotayo Mohammed, said the exercise goes beyond a routine tariff review and reflects the need to align regulation with a rapidly evolving industry.
The executive stated that the telecom market has changed materially since the last determination, both in technology deployment and market structure, adding that new service categories and business models now require regulatory attention. “For regulation to remain effective in a fast-moving market, our frameworks must evolve in step with it,” Mohammed said, noting that the review is being conducted under Section 108 of the Nigerian Communications Act 2003 to ensure tariffs remain cost-reflective and non-discriminatory.
KPMG noted the study would combine data analysis, stakeholder consultation, and international benchmarking to inform a revised pricing framework. Partner and Head of Tax, Wole Obayomi, said that regulatory and people services at the firm that the exercise was designed to identify gaps in the existing regime and test whether a structured review cycle is required.
The process, he said, depends on industry input. “It is important that we get input from the industry in terms of potential solutions and recommendations to address the shortfalls,” he said. Under the review, the NCC and KPMG will examine pricing practices across wholesale and retail segments and assess whether emerging services are adequately captured under existing regulatory definitions.
The sector’s evolution over the past decade has introduced new business models that are not fully reflected in current rules. The study will also assess the sustainability of prevailing tariff structures, with attention to investment capacity, service quality, and consumer affordability.
Related News VIDEO: Makinde vows to safely rescue abducted Oyo students, teachers Building linked to suspected ritualists demolished in Edo Makinde hosts EU delegation, seeks support for agriculture, education Operators, the consultants noted, apply varying pricing models within regulatory limits, making it necessary to examine how these structures function in practice.
As part of the process, the NCC will require operators to submit detailed financial and operational data covering revenue, costs, profitability, market share, capital expenditure, service quality, and usage trends over multiple years. KPMG said the dataset is intended to provide a clearer view of industry trends and the cumulative impact of existing pricing rules.
The engagement will include bilateral technical sessions with mobile network operators, mobile virtual network operators, international carriers, clearing houses, and interconnect exchange providers. Industry participants are expected to involve finance, technical, and commercial teams in the discussions.