IN a landmark move set to reshape Nigeria’s telecommunications landscape, the Nigerian Communications Commission (NCC) has initiated a comprehensive consultancy study to review the Mobile Termination Rate (MTR), marking the first such review in eight years.

The current MTR, which is the wholesale charge one network pays another when its customers place calls to different networks, has remained stagnant at N3.90 per minute for generic operators and N4.70 for new entrants since 2018, despite transformative changes in Nigeria’s economic and technological environment.

Industry stakeholders have long argued that the outdated rate regime no longer reflects operational realities. Since the last determination, Nigeria has witnessed significant naira depreciation, soaring inflation, and spiralling energy costs that have fundamentally altered operator cost structures.

Presenting the Consultancy Document, Tuesday in Lagos, NCC Head of Competition and Tariff, Omotayo Mohammed, said, “The foundation of wholesale interconnection affects every stakeholder in this room, emphasizing that misaligned termination rates can enable dominant operators to foreclose smaller competitors, deter infrastructure investment, and ultimately burden consumers through inflated retail prices.

She noted that the rapid deployment of 5G networks, coupled with the emergence of AI-driven services and Internet of Things (IoT) applications, has reshaped network usage patterns in ways not anticipated by the 2018 cost model.

She noted that Over-the-Top (OTT) players like WhatsApp and Telegram are capturing significant voice and messaging traffic, reducing reliance on traditional interconnection and weakening legacy wholesale revenue streams.

With KPMG appointed to carry out the tasks and engaged stakeholders within the next four months, Mohammed said the study will also address critical gaps in the current framework, including the treatment of USSD services—which underpin mobile financial services for millions of unbanked Nigerians—and Application-to-Person (A2P) SMS, whose commercial significance has grown substantially.

The document noted that operating under Sections 4, 96, 97, and 108 of the Nigerian Communications Act 2003, the NCC is mandated to promote investment, protect consumer interests, and foster fair competition.

The study will deliver, among other things, cost-reflective MTR determination across technology generations (2G-5G), operator categories, and clearing house arrangements; updated International Termination Rate (ITR) to address grey-route traffic concerns; formal pricing framework for Mobile Virtual Network Operator (MVNO) onboarding and interconnection; review of retail price floors and caps to ensure alignment with current cost structures, and Assessment of the asymmetric rate structure between large and new entrant operators.

The consultancy document promises an evidence-based, consultative approach, with stakeholders given structured opportunities to submit views and validate assumptions before any determination.

For consumers, the review promises rates that reflect actual service costs, not outdated 2018 figures, supporting retail affordability and improved access to digital financial services.

Operators stand to benefit from cost recovery reflecting CAPEX and OPEX realities, while a level playing field will prevent dominant operators from exploiting inflated termination barriers.

Perhaps most critically, the document noted that the rates that signal the true cost of infrastructure provision will reward efficient investment and provide the transparency and predictability essential for both domestic and foreign investment—a crucial consideration as Nigeria positions itself as Africa’s digital hub.

The NCC pledged to make all methodology, key assumptions, and cost model parameters available for stakeholder review, ensuring transparency throughout the process.

Industry stakeholders and observers, including ALTON and ATCON, note that this review is timely, as a stable and transparent MTR is essential for ensuring that smaller operators are not priced out of the market by dominant players. The consultation process is designed to provide participants with a clear overview of the study objectives, scope, and methodology. It also facilitates in-depth discussions on the proposed data collection templates and requirements, giving stakeholders a direct line to offer comments, clarifications, and valuable industry insights.