ALTON back’s NCC’s Mobile Termination Rate review, seeks predictable pricing framework


Business

By Anthony Isibor

THE Association of Licensed Telecommunications Operators of Nigeria, ALTON, has pledged full support for the Nigerian Communications Commission’s ongoing review of Mobile Termination Rates, MTR, describing the exercise as critical to the sustainability and competitiveness of the telecommunications industry.

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.

While acknowledging the benefits of the tariff review, Adebayo argued that the sector should move beyond periodic tariff adjustments to a more predictable and transparent pricing framework that reflects actual service delivery costs.

He said that such a framework would provide the certainty required for long-term investment planning while ensuring consumers continue to receive reliable and innovative services.

According to him, the ongoing review of mobile termination rates offers an opportunity to establish a cost-oriented regulatory regime that is aligned with prevailing economic realities.

“It is essential that the industry periodically reviews these benchmarks to ensure that regulatory decisions remain aligned with current economic conditions and the actual cost of providing services,” he said.

Adebayo stressed that regulatory interventions should become more proactive and data-driven rather than being introduced only when industry challenges become severe.

He expressed confidence that the MTR review would strengthen regulatory certainty, promote fair competition and support the long-term sustainability of the telecommunications sector.

The ALTON chairman also highlighted the strategic importance of telecommunications to the Nigerian economy, noting that virtually every sector now depends on communications infrastructure for service delivery.

“Today, telecommunications remains one of the most critical sectors of the economy. Financial services, healthcare, transportation, energy, innovation and many other sectors rely on communications networks to function effectively,” he said.

He reaffirmed ALTON’s commitment to working with the NCC and other stakeholders to ensure the success of the review process and the continued growth of the industry.

The NCC recently commenced a comprehensive study aimed at reviewing mobile and international termination rates, assessing existing interconnection arrangements and developing a cost-reflective framework that reflects current market realities, technological developments and macroeconomic conditions.

A.I

June 16, 2026

Tags: ALTON Association of Licensed Telecommunications Operators of Nigeria