MTN Nigeria and Globacom have resolved their differences on the outstanding issues surrounding the settlement of the latter’s interconnect debt,in house sources disclosed.
In a move to quell the drawn-out dispute between both firms,an agreement said to have reached.“Yes, an agreement has been reached. They have paid how much they owe. But interests had accrued over time, but we have agreed to collect N2bn as interests,” one of the sources stated.
The aftermath of the 21-day grace period granted by the Nigerian Communications Commission to Glo in January, contributed to the recent development between the two firms. As of November 2023, Glo’s network held 61.54 million mobile subscriptions, putting these subscriptions at risk of losing the ability to make calls to MTN prior to the resolution.
The NCC had initially announced in January that Glo subscribers might face restrictions on calling MTN lines due to outstanding interconnect charges. The commission warned that its directive could take effect following a 10-day notice period.
Subsequently, the commission extended its notice by an additional 21 days after the initial expiration. This extension aimed to provide more time for the disputing parties to negotiate and potentially reach an agreement, taking into consideration the potential impact on subscribers.
The NCC said of the extension, “The Commission is pleased to announce that the parties have now reached an agreement to resolve all outstanding issues between them. For this reason, and in exercise of its regulatory powers in that regard, the commission has put the phased disconnection on hold for a period of 21 (twenty-one) days from today, 17 January 2024.
“Whilst the commission expects MTN and Glo to resolve all outstanding issues within the 21-day period, the commission insists that interconnect debts must be settled by all operating companies as a necessary component towards compliance with regulatory obligations of all licensees.”
Reuben Muoka, Director, Public Affairs Department, NCC, stated that a statement might be issued soon in that regard.He said, “I am not aware yet. I think so. It may be possible, but we may have to issue a statement soon.”
Interconnect fee is the price that telecom operators pay for calls made to them from another network. MTN and Glo have disagreed over this fee for a while. In 2019, Glo subscribers briefly got disconnected from MTN over a N4bn debt.
Explaining the commission’s stance at a recent engagement with the press, Dr Aminu Maida, Executive Vice Chairman, NCC, said, “The commission has intervened because the primary issue for us is the consumer. The key thing is that both parties are on the table and there is a commitment to solving the issues within the next
21 days.”