Sylvia Duruson
A recent standoff between two major players in Nigeria’s telecommunications industry has sparked questions around the sector’s financial agreements and stability.
Globacom, the country’s second largest mobile network, faces partial disconnection from certain services of rival operator MTN Nigeria. This follows Globacom’s alleged failure to settle significant debts related to interconnection charges owed to MTN.
On January 8th, the Nigerian Communications Commission (NCC) granted approval to MTN to initiate a partial disconnection of Globacom starting January 18th. This entails that Globacom subscribers will be unable to make outgoing calls to MTN users. However, they can still receive incoming calls as well as maintain data services and outbound calls to other networks.
According to the NCC, the approval follows repeated unsuccessful attempts to resolve the dispute. The Commission stated that Globacom had failed to provide sufficient justification for non-payment of the charges owed to MTN.
This is not the first dispute between the two telecom giants. In 2018, the NCC set interconnection call rates which MTN alleged Globacom was not complying with. This led to MTN partially blocking Globacom subscribers for several days until stakeholders intervened.
Again in 2019, MTN implemented a similar suspension of outbound call services from Globacom users over unpaid debts. The recurring disputes point to destabilizing financial tensions between major industry players.
Beyond the direct impact on subscribers, the impending MTN-Globacom fallout has broader implications for Nigeria’s telecom landscape. It raises uncertainty around the reliability of partnerships between mobile operators. The sector’s resilience is also tested as major providers navigate suspensions and blocked services.
For regulators and policymakers, this situation warrants closer oversight of contractual dealings to prevent severe network disruptions. It also serves as a case study to improve financial and operational frameworks for a more resilient telecom industry.
As operators adapt to ever-shifting ties with competitors, the landscape may see rising volatility. However, an opportunity exists to reinforce stability through prudent foresight and guidance.
The unfolding circumstances between MTN and Globacom highlight the complex interdependence between mobile networks. As Nigeria’s telecom sector continues evolving, all players must collaborate to uphold robust connectivity and choice for subscribers nationwide.
