NCC Begins Major Telecom Review, Call and SMS Prices May Rise Soon in Nigeria

• The NCC has begun reviewing telecom interconnection rates, a move that could trigger higher call and SMS charges for Nigerian mobile users. The review is driven by rising operational costs, currency depreciation, inflation, and technological shifts such as 5G, AI, IoT, and OTT competition.
• Stakeholders argue the current pricing structure is outdated and may no longer reflect market realities. While regulators and consultants emphasize the need for cost-reflective rates to sustain investment and competition, concerns remain that consumers may ultimately bear the cost through higher tariffs.

The Nigerian Communications Commission has commenced a review of interconnection rates for voice calls and SMS services, a development that may lead to higher telecom charges for subscribers across Nigeria.

The review focuses on the Mobile Termination Rate (MTR), the fees operators pay when calls are terminated on rival networks. The current regime, introduced eight years ago, sees operators paying between ₦3.90 and ₦4.70 per minute.

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, issues such as naira depreciation, rising inflation, escalating energy costs, and increased equipment expenses have significantly impacted operators’ cost structures.

He stated that rates set too low could discourage infrastructure investment, while cost-reflective pricing would encourage efficiency, strengthen competition, and support broader 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.

However, he warned that higher termination charges are often passed on to consumers through increased retail prices, raising concerns about affordability.

Adenekan also highlighted that 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(IoT), as well as competition from Over-the-Top (OTT) platforms, have made the existing interconnection framework outdated.

In her remarks, Omotayo Mohammed described the review as a critical economic intervention aimed at aligning regulatory frameworks with rapid industry changes.

She added that the commission would also review existing retail price controls and asymmetry arrangements to safeguard consumer welfare.