MTN And Globacom Have Reached an Agreement to Resolve Their Interconnection Fee Debt
Following a 15-year-long dispute over interconnection fees, MTN Nigeria and Globacom (Glo), two prominent Nigerian telcos, have reached a resolution. MTN agreed to accept ₦2 billion to settle the interest payment, a reduction from the initial demand of ₦3 billion, according to a source familiar with the negotiations. The interconnection debt, which accrued interest, was settled earlier, the source added.
The agreement follows interventions by the Nigerian Communications Commission (NCC) at the request of Glo. In January, Glo faced the threat of disconnection by MTN Nigeria and was given a 21-day ultimatum by the NCC to settle its debt or risk having its 61.5 million subscribers barred from calling MTN lines.
Glo’s interconnection fees debt had accumulated over the years due to its consistently paying significantly less than the amount owed. Both MTN and Airtel Nigeria had previously threatened to disconnect Glo, with MTN even disconnecting Glo for five days in 2019.
The recent disconnection process commenced in November 2022 due to an outstanding debt owed to MTN Nigeria by Glo. MTN sought NCC approval for disconnection, which it received in December 2023.
A source within the NCC mentioned that the new executive vice chairman intends to enforce compliance with market rules among all telecom operators, signaling a departure from past approaches.
