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Nigeria Telcos Face N20 billion Interconnection Debt

By on December 14, 2012

Key telecommunications operators are believed to be exposed to an interconnection debt of a whooping N20 billion, a development that poses a risk for the heavily subscribed sector in the Nation.

The process of interconnection in the mobile technology sector, is one that connotes the situation where calls from one network are terminated on another network. It is also the provision in the mobile technology market that enables the customer to call another on another network , regardless of network.

The amazing figure was released at the Nigerian Communications Commission (NCC ) organized forum in Lagos on ‘Regulatory Forum On The High Incidence Of Interconnection Indebtedness In The Nigerian Industry’.

Analysis from telecommunications experts reveal that many of the CDMA operators are indebted to the major telecommunications mobile companies, while within the major operators there is still debate and argument over the exact amount they owe each other.

At the NCC forum Mrs Abimbola Akeredolu who spoke on the topic “What is the solution to interconnection indebtedness in Nigeria,” stressed that approximately 60 percent of the N20 billion were disputed by the Telcos, who alleged inflation of the figures.

She said “The feeling in the industry is that if the situation persists whereby GSM companies are better favoured than the fixed and wireless operators, such a situation will continue to lead to interconnectivity debt, or breakage”.

Alluding to the recent development in the Industry the Globacom Regulatory Affairs Manager Mr Tunde Aremu stated that the issue of Interconnection Debt required urgent intervention as the issue has become worrisome.

For the NCC Executive Vice Chairman Mr Eugene Juwah, the issue of interconnection indebtedness poses a great challenge to the success achieved by the industry. He called on the Telcos to embrace dialogue and evolve ways in which the indebtedness can be resolved amicably.