Business a.m
The Nigerian Communications Commission (NCC) has decided to temporarily suspend its plan to bar Globacom subscribers from making calls to MTN lines. This is expected to last for 21 days, giving the NCC time to consult with stakeholders and resolve the issues involved.
The NCC's decision was announced in a statement issued on Thursday, January 18, 2024, by Reuben Mouka, the commission's Director of Public Affairs. The statement noted that the decision was made in light of the NCC's Pre-Disconnection Notice issued on January 8, 2024.
According to the NCC's initial statement, the commission had approved MTN's request to begin a phased disconnection of Globacom's subscribers. This was to take effect from January 18, 2024, and was a result of a long-standing dispute between the two companies regarding interconnection fees.
Following the extension, the NCC released a new statement indicating that it is satisfied with the progress made by the parties in resolving their dispute. As a result, the NCC has decided to put the planned disconnection on hold for 21 days. This will allow the two companies to finalise their agreement and come to a long-term resolution that is acceptable to all parties.
The NCC stated, “Whilst the commission expects MTN and Glo to resolve all outstanding issues within the 21 days, the commission insists that interconnect debts must be settled by all operating companies as a necessary component towards compliance with regulatory obligations of all licensees.”
It also noted that its approval for disconnection would have potential impacts on consumers.
In the extension notice, the NCC emphasised that mobile network operators and other telecom licensees are required to abide by the terms and conditions of their licenses, including their interconnection agreements.
The interconnect charge, also known as an interconnection fee, is the fee that one telecom operator pays another when its subscribers make calls to the other network. In the case of MTN and Glo, they have been in dispute over this fee for some time. In 2019, MTN temporarily disconnected Glo subscribers after the latter failed to pay a N4 billion interconnect charge.
In 2020,Umar Danbatta, the immediate past executive vice chairman of the NCC, stated that the interconnect debt had reached over N70 billion. Danbatta noted that this massive debt was a threat to the operators' ability to expand their infrastructure and provide better quality service. He also emphasised that the debt was harmful to healthy competition and the growth of Nigeria's digital economy.
