The Nigerian Communications Commission (NCC), has begun a comprehensive review of telecom interconnection pricing, the first major reassessment of the sector’s tariff framework in nearly a decade.
The exercise led by consultancy firm KPMG, kicked off in Lagos at a mobile termination rate stakeholder forum on Tuesday which brought regulators, operators and industry participants into a structured process to reassess wholesale pricing rules that govern payments between networks for completing voice calls.
The telecom regulator said the current framework, last set in 2018 and adjusted in 2022, has been overtaken by structural changes in the market, including the rollout of 5G, the expansion of data-led services, and the entry of mobile virtual network operators.
It also cited macroeconomic pressure, including currency depreciation and inflation, which have significantly altered operators’ cost bases.
The Head of the Competition and Tariff Unit at the NCC, Omotayo Mohammed, said the exercise goes beyond a routine tariff review and reflects the need to align regulation with a rapidly evolving industry.
How The Review Would be Carried Out
KPMG noted the study would combine data analysis, stakeholder consultation, and international benchmarking to inform a revised pricing framework.
KPMG Partner and Head of Tax, Wole Obayomi, said that regulatory and people services at the firm that the exercise was designed to identify gaps in the existing regime and test whether a structured review cycle is required.
“It is important that we get input from the industry in terms of potential solutions and recommendations to address the shortfalls,” he said.
Under the review, the NCC and KPMG will examine pricing practices across wholesale and retail segments and assess whether emerging services are adequately captured under existing regulatory definitions.
The study will also assess the sustainability of prevailing tariff structures, with attention to investment capacity, service quality, and consumer affordability.
Operators, the consultants noted, apply varying pricing models within regulatory limits, making it necessary to examine how these structures function in practice.
As part of the process, the NCC will require operators to submit detailed financial and operational data covering revenue, costs, profitability, market share, capital expenditure, service quality, and usage trends over multiple years.
KPMG said the dataset is intended to provide a clearer view of industry trends and the cumulative impact of existing pricing rules.
