Telecommunications giants MTN Nigeria and Globacom (Glo) have concluded a 15-year-long disagreement over interconnection fees. MTN has agreed to accept ₦2 billion to resolve the interest payment, rather than the initially demanded ₦3 billion, according to a source familiar with the negotiations. The core interconnection debt had already been resolved.
The settlement came after efforts led by the Nigerian Communications Commission (NCC) at Globacom’s request. In January, Globacom faced the possibility of disconnecting from MTN Nigeria and was given a 21-day deadline by the NCC to resolve its debts or its 61.5 million subscribers would be prevented from making calls to MTN lines.
The interconnection fee debt of Globacom (Glo) has steadily increased over time due to its habitual underpayment of the full bill. Multiple threats of disconnection have been issued by MTN and Airtel Nigeria over the years, with MTN even disconnecting Glo for five days in 2019.
The latest disconnection process initiated in November 2022 was due to accumulated debt Glo owed to MTN Nigeria. MTN sought approval from NCC for a disconnection, which was granted in December 2023.
An insider at the NCC has stated that their new executive vice chairman intends to ensure full compliance with market rules by all telecom operators moving forward.
