In a decisive move aimed at enforcing compliance within the telecommunications sector, the Nigerian Communications Commission (NCC) has approved the disconnection of Exchange Telecommunications Limited (Exchange) by MTN Nigeria Communications Limited (MTN). The decision, announced on Friday, December 27, 2024, follows Exchange’s failure to settle outstanding interconnect charges owed to MTN despite being given multiple opportunities to address the issue.
The NCC stated that its approval is in accordance with the Nigerian Communications Act 2003 and the Guidelines for Procedure for Granting Approval to Disconnect Telecommunications Operators, 2012. These regulatory frameworks empower the Commission to safeguard the industry’s financial ecosystem and ensure operators meet their obligations to one another.
Exchange Telecommunications Limited had been notified of MTN’s application for disconnection and was afforded the opportunity to respond and present its case. However, after a detailed review of the circumstances, including the nature of the debt and Exchange’s explanations, the Commission determined that Exchange failed to provide sufficient justification for its non-payment of the interconnect charges.
Interconnect charges are critical payments exchanged between telecommunications operators for handling calls and data traffic across their networks. Failure to meet these financial obligations not only disrupts business relationships but also threatens the operational stability of the industry.
The NCC’s public notice highlights key measures that will take effect as part of this decision:
- Cessation of Traffic: Five days after the notice (by January 1, 2025), MTN will stop routing voice and data traffic through Exchange. This means Exchange customers may experience disruptions in connectivity and will need to rely on alternative service providers for communication services.
- Use of Alternative Channels: MTN will redirect interconnect traffic through alternative network service providers, ensuring minimal disruption to its operations and maintaining communication flows for its subscribers.
The disconnection will remain in effect indefinitely until further directives are issued by the NCC.
The Commission has emphasized the importance of this action as a regulatory measure to enforce accountability and financial discipline in the telecommunications sector. It also serves as a warning to other operators to prioritize compliance with interconnect agreements and obligations.
This decision reflects the NCC’s firm commitment to upholding the integrity of Nigeria’s telecommunications landscape. By holding operators accountable for their obligations, the Commission aims to sustain the trust and functionality of the sector, which serves as a backbone for the nation’s economy and communication infrastructure.
Industry stakeholders and the public are advised to monitor further updates from the NCC regarding the status of the disconnection and any potential resolutions.
