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2024-12-15
Millions of Nigerian mobile phone users can breathe a sigh of relief. A potential communication disruption has been averted after the Nigerian Communications Commission (NCC) successfully mediated a resolution between telecommunications giants MTN and Globacom.
This article dives into the recent interconnect debt saga between the two companies and the NCC’s role in ensuring continued network connectivity for Nigerians.
Debt Dispute Resolved, Disconnection Avoided
The NCC announced on February 8th, 2024, that the lingering interconnect debt issue between MTN and Globacom had been amicably resolved. This effectively revoked MTN’s previously granted permission to partially disconnect Globacom users due to unpaid fees.
What is Interconnect Debt?
Interconnect debt refers to the money owed by one telecommunications company to another for completing calls on each other’s networks. In simpler terms, when an MTN user calls a Globacom user, MTN pays Globacom a certain fee for facilitating the call.
The NCC Steps In
The situation escalated in January 2024 when the NCC authorized MTN to partially disconnect Globacom over unpaid interconnect fees. This meant Globacom subscribers would have been unable to make calls to MTN numbers. However, the NCC intervened, postponing the disconnection for 21 days to allow for negotiations between the two companies.
What Undercode Says:
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This incident also underscores the importance of clear and enforceable interconnect agreements between mobile network operators. The NCC’s announcement of stricter monitoring of interconnect debt and a more transparent approach towards industry indebtedness is a welcome development.
Looking Ahead: Potential Tariff Increase
While the immediate crisis is averted, the issue of telecommunication costs remains. Legit.ng previously reported that MTN, Globacom, and other providers are lobbying for a 10-15% increase in call and data tariffs.
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