Globacom secures 21-Day grace period to resolve Interconnect Fee Dispute with MTN

Globacom, a major telecommunications player in Nigeria, has been granted an additional 21 days to settle interconnect fees owed to MTN, averting the imminent disconnection that was scheduled by the Nigerian Communications Commission (NCC). The interconnect fees, charges for calls terminating on the network, were a source of contention between the two telecom giants.

In an official statement, the NCC expressed satisfaction that both parties had reached an agreement to resolve the outstanding issues. The regulatory body expects a comprehensive resolution within the stipulated 21-day period.

Earlier, on January 8, the NCC had issued a disconnection notice to Globacom, granting MTN the authority to disconnect Glo subscribers due to accumulated unpaid interconnect fees, estimated at ₦6 billion ($6.7 million).

A phased disconnection would have impacted Glo’s 61.39 million subscribers, preventing them from calling MTN users, while MTN subscribers could still reach Glo users. Glo, however, contested the claim, asserting that it had no outstanding interconnect charges with MTN. This interconnect fee dispute has persisted for over 15 years, leading to intermittent threats of disconnection from MTN.

In 2019, MTN disconnected Globacom from its network for five days, compelling Glo to settle ₦2.6 billion out of a total ₦4.4 billion in owed interconnect fees. The NCC, in a recent statement, announced the suspension of MTN’s approval to disconnect Globacom for 21 days, during which both companies are expected to resolve outstanding issues comprehensively. The suspension was applied to ensure the protection of consumer interests and the seamless operation of the national telecoms network.

Despite the temporary reprieve, the NCC emphasised that interconnect debts must be settled by all telecom operators to comply with regulatory obligations. The commission reminded Mobile Network Operators (MNOs) and other licensees in the telecom industry to adhere strictly to the terms and conditions of their licenses and interconnection agreements. The move aims to ensure a stable and consumer-friendly telecommunications environment.

Industry Implications and Consumer Impact

The resolution of the interconnect fee dispute between Globacom and MTN holds significant implications for the telecommunications industry in Nigeria. The potential disconnection, which has been a recurrent threat over the years, raised concerns about the broader impact on consumers and the seamless operation of telecom services. With both parties agreeing to a 21-day grace period, there is an opportunity for a more enduring resolution that could positively shape the dynamics of interconnect agreements in the sector.

Interconnectivity is a critical aspect of the telecommunications ecosystem, facilitating the seamless communication between subscribers of different networks. Any disruptions in this interconnectivity not only affect the telecom operators involved but also impact the end-users who rely on uninterrupted communication services. The Nigerian Communications Commission’s proactive role in ensuring a temporary suspension of disconnection underscores the importance of safeguarding consumer interests and maintaining a stable telecom environment.

The extended timeframe for negotiations provides an opening for both Globacom and MTN to reevaluate and potentially overhaul their interconnect arrangements. This could involve revisiting the terms, settling outstanding payments, and establishing a framework for more transparent and sustainable agreements in the future. Such developments have the potential to set a precedent for how telecom operators in Nigeria handle interconnectivity disputes, fostering a more collaborative and mutually beneficial industry landscape.