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How Glo, MTN interconnect debt rift was resolved, by sources

Top level negotiations among officials of two of Nigeria’s leading telcos, MTN Nigeria and Globacom (Glo) and officials of the Nigerian Communications Commission (NCC) led to the amicable settlement of the interconnect debt rift between the two telcos, sources said.

Interconnect debt is one of the internal issues besetting the telecoms industry as operators get cash from interconnected calls but fail to remit to their counterparts.

MTN had approached the NCC to get its nod for a disconnection in 2022. The Commission eventually acquiesced to the demand in December 2023 which in January gave Glo 21 days to settle its debt or its subscribers would be blocked from calling MTN lines.

The new Executive Vice Chairman Dr Aminu Maida said under his watch, the industry would see collaboration to amicably resolve issues in the industry.

Sources said the interconnect dispute was finally resolve after MTN agreed to accept ?2 billion to as interest payment instead of the ?3 billion initially demanded.

The interconnection debt on which those interests accrued had earlier been settled, a source familiar with the dispute resolution added.

Glo’s interconnection fees debt grew over the year because it often paid substantially less than the bill it racked up. There have been multiple threats from MTN and Airtel Nigeria to disconnect Glo over the years, with MTN disconnecting Glo for five days in 2019.

According to a document entitled: Subscriber/Teledensity Data January 2023-December 2023, sourced from the NCC, while MTN posted 87,038,768 (38.79 per cent), Globacom had 61,604,576 representing 27.45per cent trailing Airtel with 61,834,105 representing 27.55 per cent. 

9mobile had 13,935,482 representing 6.21per cent.

In a statement announcing the settlement of the dispute, NCC said it was pleased to announce that the interconnect debt dispute between MTN Nigeria Communications Plc. (MTN) and Globacom Limited (Globacom) has been amicably resolved.

“In accordance with this resolution, the disconnection approval granted to MTN for the disconnection of Globacom has now been withdrawn.

“Following its initial Public Notice, the Commission with the aim of mitigating any potential disruptions to subscribers undertook further regulatory intervention, by mediating between the parties and facilitating the reconciliation process,” NCC said.

It reiterated that strict adherence to the terms and conditions of licenses, particularly those delineated in interconnection agreements, is imperative for all Mobile Network Operators (MNOs) and other licensees within the telecommunications industry.

“In order to proactively address and prevent future instances of interconnect indebtedness within the industry, the Commission will be requesting relevant records and regular updates from MNOs, as well as adopting a transparent approach towards industry indebtedness.

“This statement serves as a reminder of the Commission's commitment to fostering a stable and compliant telecommunications ecosystem in Nigeria,” the statement, endorsed by Reuben Muoka, Director, Public Affairs at NCC said.