NCC Reveals Call, SMS Costs May Rise as Telecom Rate Review Begins

The Nigerian Communications Commission (NCC) has commenced a review of interconnection rates for telecom operators’ voice call and SMS services, a move that could lead to higher charges for mobile subscribers across the country.

The review comes eight years after the current Mobile Termination Rate (MTR) regime was introduced, with operators presently paying between N3.90 and N4.70 per minute for calls terminated on rival networks.

Speaking at a stakeholders’ consultative forum on the determination of MTR in Lagos on Tuesday, KPMG partner, Wole Adenekan, said the review had become necessary due to major economic and technological changes that have reshaped the telecommunications sector since 2018.

According to him, significant naira depreciation, rising inflation, escalating energy costs, and increased equipment expenses have substantially altered operators’ cost structures.

He noted that rates set too low could discourage infrastructure investment, while cost-reflective rates would encourage efficiency, support competition, and contribute positively to economic growth.

“A mis-set MTR can enable dominant operators to foreclose smaller competitors through high termination barriers. A cost-reflective rate supports a level competitive playing field,” Adenekan said.

He, however, warned that inflated termination charges are often passed on to consumers through higher retail prices.

Adenekan also pointed to the rollout of 5G technology, growing adoption of artificial intelligence (AI) and the Internet of Things (IoT), as well as competition from Over-the-Top (OTT) platforms, as factors making the existing interconnection framework outdated.

In her remarks, NCC’s Head of Competition and Tariff Unit, Omotayo Mohammed, described the review as a critical economic intervention aimed at aligning regulatory frameworks with rapid changes in the telecom industry.

She said the commission would also examine existing retail price controls and asymmetry arrangements to protect consumer welfare.