NCC authorises MTN to disconnect Globacom over interconnect debt, triggering fears of mass subscriber porting

The Nigerian Communications Commission (NCC) has authorised MTN Nigeria to initiate a partial disconnection of Globacom subscribers from its network due to outstanding interconnect debt.

RELATED: BREAKING! NCC restores regulatory services to Globacom

This move, as revealed in a ‘Pre-Disconnection Notice’ released in Abuja and signed by Reuben Muoka, the NCC’s Director of Public Affairs, has sparked concerns about potential mass porting from Globacom.

 Globacom’s failure to settle interconnect charges  unjustifiable

Analysts predict that Globacom faces a significant risk of losing its position as the second-largest network among Nigeria’s 220 million subscribers if it fails to meet the conditions outlined in the notice.

The decision by the telecom regulator follows a thorough review, deeming Globacom’s failure to settle interconnect charges as unjustifiable. With the accumulated interconnect debt in the industry exceeding N70 billion in 2020, Globacom owes a substantial portion of this debt to other operators.

MTN rules market; Globacom owes highest interconnect debt

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MTN currently dominates the Nigerian telecom market with over 84.66 million subscribers as of March 2023, while Globacom holds the second spot with more than 61.33 million. Airtel Nigeria ranks third with approximately 60.19 million subscribers, followed by 9mobile with a subscriber base of 13.58 million during the same period.

Decision could ignite mass porting from Globacom

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This regulatory action might trigger a surge in mass porting from Globacom. Porting enables subscribers to transfer their existing phone numbers from one network provider to another while retaining their numbers and contacts. Although porting is permitted in Nigeria, it has seen limited use. Less than 4,000 subscribers ported in and out of all the four networks according to a Q1 2023 report by the National Bureau of Statistics (NBS).

However, the present situation, where the regulator is employing stricter measures to enforce interconnect payment obligations, may prompt subscribers to switch from networks unable to facilitate connections with other providers.

Significance of Regulatory Notice 

The regulatory notice specifies the approved partial disconnection of Globacom from MTN in accordance with the Nigerian Communications Act of 2003 and relevant guidelines. After a ten-day notice period, subscribers of Globacom will be unable to make calls to MTN but will still be able to receive calls. However, inbound calls to the Globacom network will remain operational. This disconnection will persist until the Commission determines otherwise.

With this decision, the NCC is highlighting the significance of settling interconnect debts among telecom operators to maintain seamless communication services and prevent potential disruptions for subscribers across networks.

Highlights of the regulatory Notice

1. “The Nigerian Communications Commission hereby notifies the public and subscribers of Globacom Limited (Globacom) that APPROVAL has been granted for the partial disconnection of Globacom from MIN Nigeria Communications Plc. (MTN), due to non-settlement of interconnect charges.
2. “Globacom was notified of the application made by MTN and was allowed to comment and state its case.
3. “The Commission, having examined the application and circumstances surrounding the indebtedness, determined that Globacom does not have sufficient or justifiable reason for non-payment of the interconnect charges.
4. “All subscribers are, therefore, requested to TAKE NOTICE that: The Commission has approved the Partial Disconnection of Globacom to MTN in accordance with Section 100 of the Nigerian Communications Act, 2003, and Paragraph 9 of the Guidelines on Procedure for Granting Approval to Disconnect Telecommunications Operators, 2012.
5. “At the expiration of 10 (ten) days from the date of this notice, subscribers of Globacom will no longer be able to make calls to MTN but will be able to RECEIVE CALLS.
6. “The PARTIAL DISCONNECTION, however, will allow inbound calls to the Globacom network. Please note that this disconnection will subsist until otherwise determined by the Commission.”