MTN to partially disconnect GLO amid interconnect charges

The request by MTN to partially disconnect GLO from its network due to unpaid interconnect charges has been approved by the Nigerian Communications Commission (NCC). 

As noted during Reuben Muoka’s press briefing, the Glo disconnection was stated in the Pre-Disconnection Notice and approved after Glo had breached their obligations to pay the recently incurred debts as well as the previously overdue obligations. 

Globacom was afforded the opportunity to provide comments and present its case in regard to the application sent to the NCC by MTN. 

However, after a review of the status of the application made by MTN and taking into account the allegations regarding the outstanding interconnect debts, the commission decided that Globacom did not have a plausible or adequate explanation for the non-payment of the interconnect fees claimed. 

What are interconnect charges?

Interconnect charges are fees levied by the service providers against each other for the completion of calls that are directed to their networks. Such interconnect charges will become applicable in a situation where the call is being made by a subscriber of one telecom network and is received on another network. 

The purpose of interconnect charges is to pay the telecom operator for the network resources and services that were used in answering and terminating the call.

Imagine a situation in which a subscriber from Network A makes a call to a subscriber on Network B. Here, the originating network, A, bears the cost of the call being made. At the same time, Network B, which is the terminating network, pays the cost for the call being made and answered. There exist interconnect charges that make sure that proper compensation is shared between all of these two networks. 

Let’s understand further: if an operator has subscribers like Operator X and they are calling another operator, say Operator Y, then Operator X has to pay interconnect charges to Operator Y to be able to make calls to their subscribers. 

This payment scheme is made in order to balance the payment burden for the provision of inter-carrier telecommunications services in a way that will promote the development and maintenance of telecommunications in the country as a whole. 

MTN to partially disconnect glo users from its Network

As per the approved partial disconnection, Globacom subscribers will be able to receive calls from MTN subscribers but not be able to call them. All other network functions, including outgoing calls to other networks and data services, will continue for Globacom customers.

Order was Not Followed 

The Commission’s pronouncement claims that the issue with disconnection is in compliance with Section 100 of the Nigerian Communications Act and Paragraph 9 of the Procedures for Granting Approval to Disconnect the Telecommunications Operators not following guidelines issued in the year 2012. 

After a 10-day window from January 8, 2024, subscribers to Globacom will no longer be able to make any outgoing calls to MTN, but receiving calls will still be permitted. 

This decision hinges upon interconnect charges, which are the fees charged by a telecom operator to other operators for calls terminating on their network. An unnamed source asserts that Glo is in deficit to MTN to the tune of N6 billion in respect of interconnect charges. 

Attempts have been made to solicit Glo’s views, but none have been received as the company has not responded to the request. This unfortunate state of affairs emphasizes the need for one to honor debts incurred in the telecom business.