The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has pledged full support for the planned review of the Mobile Termination Rates (MTR) by the Nigerian Communications Commission (NCC).
Speaking at the NCC Stakeholders’ Consultative Forum on the determination of Mobile Termination Rates in Nigeria, Gbenga Adebayo, ALTON Chairman, said that the operators would cooperate fully with the Commission and its consultants throughout the data collection and stakeholder engagement process.
According to him, mobile termination rates remain a fundamental component of the telecommunications ecosystem because they directly affect industry sustainability, competition and investment.
Adebayo assured the Commission that all member companies would provide the information required to support the review.
“We are aware that the next phase of the exercise will involve data collection and information gathering. On behalf of our members, I assure the Commission that operators will provide all the necessary information to facilitate the work,” he said.
The ALTON chairman also commended the NCC for approving a tariff adjustment for telecommunications operators, saying the decision provided the much-needed relief at a time when operators were grappling with rising operating costs.
He recalled concerns raised by industry stakeholders in 2024 about the financial health of the sector and the possibility of service disruptions if urgent interventions were not implemented.
According to him, the tariff adjustment helped stabilise the industry and created room for renewed investment in network infrastructure.
Adebayo disclosed that telecommunications operators and other industry players invested about N2.18 trillion in capital expenditure in 2025, while an additional N1.8 trillion has been projected for investment in 2026.
He said that the investments were directed at network expansion, technology upgrades, cybersecurity improvements, energy infrastructure, rural connectivity and other strategic projects needed to support Nigeria’s digital economy.
“The positive impact of the tariff adjustment is already evident across the sector. From concerns about the health of the industry, we have moved to a position where operators are making substantial investments in network infrastructure and service improvement,” he said.
Meanwhile, KPMG, the consulting firm engaged by the NCC to conduct a comprehensive review of Nigeria’s MTR and International Termination Rate (ITR) regime, has unveiled a detailed methodology that will underpin the study aimed at determining new wholesale telecom pricing benchmarks.
Speaking at the stakeholders’ Consultative forum meeting in Lagos on Tuesday, Oluwole Adelokun, KPMG representative said that the study would focus on assessing the effectiveness of the current interconnection regime, benchmarking Nigeria against comparable international markets and developing a forward-looking cost model to support a new pricing framework for the telecommunications industry.
The firm noted that it previously participated in the last MTR review exercise and is returning to support the NCC in achieving its objectives of promoting sustainable growth, competition and investment in the sector.
According to KPMG, the study has four major deliverables. These include an independent assessment of the current interconnect regime and its impact on operators and consumers, a comparative analysis of international best practices, the development of a forward-looking cost model and recommendations for a revised pricing and regulatory framework.
The consultants explained that the review would seek to identify shortcomings in the existing regime, assess whether current pricing structures remain fit for purpose, and determine how emerging telecommunications services can be accommodated within the regulatory framework.
“KPMG will conduct an objective impact assessment of the current interconnect regime and provide recommendations that support industry growth both now and in the future,” the firm said.
The study has been divided into three phases: Assess, Discover and Develop.
Under the assessment phase, KPMG will evaluate the existing tariff structure, pricing practices and the sustainability of current asymmetry arrangements designed to support smaller operators. The exercise will also examine retail and wholesale pricing models across the industry, including bundles, discounts and promotional offerings.
As part of the process, operators will be invited to participate in one-on-one engagements and stakeholder forums aimed at gathering industry perspectives.
The consultants disclosed that operators would be required to provide extensive financial and operational information covering a five-year period. The requested data will include revenue, costs, profitability, market share, quality of service indicators, investment levels and consumer usage metrics.
According to KPMG, the five-year data horizon is necessary to establish reliable trends and accurately assess the impact of the current tariff regime on market performance.
The benchmarking phase will involve a comparative review of regulatory and pricing frameworks in selected African and emerging markets. Countries expected to be considered include major African telecommunications markets such as South Africa and Kenya, alongside emerging economies such as Indonesia and Malaysia.
The objective, according to the consultants, is to identify global best practices and determine lessons relevant to Nigeria’s evolving telecommunications ecosystem.
KPMG said the final phase of the study would involve the development of a forward-looking cost model based on internationally recognised methodologies.
GIK/APA