NCC launches first telecom pricing review in 8 years as 5G, inflation reshape industry

Nigerian Communications Commission (NCC) has started a major review of telecom pricing rules, marking the first comprehensive assessment of the sector’s tariff framework in nearly eight years.

The exercise, being carried out in partnership with KPMG, was launched at a Mobile Termination Rate stakeholders’ forum in Lagos on Tuesday.

The review is focused on Mobile Termination Rates, the charges telecom operators pay one another to complete calls across different networks.

According to the NCC, the existing framework, introduced in 2018 and later adjusted in 2022, no longer reflects the realities of today’s telecom market.

Speaking at the event, the Head of the NCC’s Competition and Tariff Unit, Omotayo Mohammed, said the industry has witnessed significant changes, including the rollout of 5G services, the growth of data-driven business models and the emergence of mobile virtual network operators.

“For regulation to remain effective in a fast-moving market, our frameworks must evolve in step with it,” Mohammed said.

He added that the review is being conducted under Section 108 of the Nigerian Communications Act 2003 to ensure tariffs remain fair, transparent and cost-reflective.

KPMG said the study will combine industry data, stakeholder consultations and international benchmarking to identify gaps in the current system and recommend improvements.

Partner and Head of Tax, Regulatory and People Services at KPMG, Oluwole Adelokun, stressed the importance of industry participation, saying, “It is important that we get input from the industry in terms of potential solutions and recommendations to address the shortfalls.”

As part of the process, operators will submit detailed financial and operational information, while technical sessions will be held with telecom firms, virtual network operators and other key industry players. The NCC said findings from the review will help create a pricing framework that encourages competition, supports investment and protects consumers.

Director of Public Affairs at the NCC, Nnenna Ukoha, noted that the review affects the entire telecom value chain, from operators and investors to consumers.

She urged stakeholders to provide accurate and timely data to ensure the success of the exercise.