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The Nigerian Communications Commission (NCC) has granted approval for MTN Nigeria to disconnect Exchange Telecommunications Limited from its network over unpaid interconnect charges.
In a public notice issued on Friday, the telecom regulator explained that the decision followed Exchange Telecoms’ failure to settle its financial obligations for interconnect services. Exchange Telecoms, a company facilitating the interconnection of calls and data traffic both locally and internationally, is currently linked to all Mobile Network Operators (MNOs) in Nigeria.
The disconnection means Exchange Telecoms will no longer be able to route MTN’s calls and data traffic to other networks.
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However, the NCC assured that MTN would transition to alternative channels for its interconnection needs post-disconnection.
The NCC highlighted that Exchange Telecoms was notified about MTN’s application for disconnection and given an opportunity to respond. Despite this, the company did not provide a sufficient justification for its non-payment.
“The Commission, having examined the application and circumstances surrounding the indebtedness, determined that Exchange does not have sufficient reason for non-payment of the interconnect charges,” the NCC stated in a notice signed by its Director of Public Affairs, Dr. Reuben Muoka.
The regulator cited Section 100 of the Nigerian Communications Act, 2003, and the Guidelines on Procedure for Granting Approval to Disconnect Telecommunications Operators, 2012, as the legal basis for its decision.
“At the expiration of five (5) days from the date of this notice, MTN will discontinue passing voice and data traffic through Exchange and will, thereafter, utilise alternative channels in interconnecting with other network service providers. Please note that this disconnection will subsist until otherwise determined by the Commission,” the NCC added.
This is not the first time the NCC has mediated interconnect debt disputes. Earlier this year, the Commission issued a similar notice concerning MTN and Globacom.
In that case, MTN was granted approval for a partial disconnection of Globacom due to unpaid interconnect charges. However, before the disconnection took effect, the two MNOs reached an agreement, rendering the notice unnecessary.
Interconnect rates represent the charges that telecom operators pay one another for terminating calls on their respective networks. Exchange Telecoms acts as an intermediary, routing calls and data traffic between operators and managing the associated charges.
Exchange Telecoms, through its website, claims to be the sole carrier transiting international calls originating from all Nigerian MNOs to destinations worldwide. The company reportedly terminates over 100 million international minutes into Nigeria each month and handles outbound calls from Nigeria to global destinations.
The NCC’s decision underscores the importance of financial compliance within Nigeria’s telecommunications sector. While the disconnection will disrupt Exchange Telecoms’ operations, MTN’s swift shift to alternative channels aims to minimize service disruptions for its customers.
The regulatory body has reiterated its commitment to maintaining a fair and transparent telecom ecosystem.
