In 10 days, Globacom users may not be able to make calls to MTN over unpaid debts

Nigerian telecommunications company, MTN Nigeria has received approval from the Nigerian Communications Commission (NCC) to partially disconnect subscribers on the Globacom network due to a lingering unpaid interconnection debt. The telecoms provider has the approval to terminate the connection in days (18th January) except otherwise determined by the Commission.

The decision, as conveyed by Reuben Muoka, NCC’s Director of Public Affairs, in a document titled ‘Pre-Disconnection Notice’ shared with Punch Newspapers on Monday, follows Glo’s failure to settle its debts despite repeated attempts for resolution.

The recent approval by the Nigerian Communications Commission (NCC) for the partial disconnection of Globacom by MTN due to unpaid debts goes beyond individual subscribers, signalling broader implications for the telecommunications industry in Nigeria.

The details of this disconnection entail that Globacom subscribers can only receive calls from MTN users, with other network functions remaining operational, including outgoing calls to other networks and data services.

According to the statement, “The Partial Disconnection of Globacom to MTN is approved by the Commission under Section 100 of the Nigerian Communications Act, 2003, and Paragraph 9 of the Guidelines on Procedure for Granting Approval to Disconnect Telecommunications Operators, 2012.”

“At the expiration of 10 days from January 8, 2024, subscribers of Globacom will no longer be able to make calls to MTN but will be able to receive calls. The Partial Disconnection, however, will allow in-bound calls to the Globacom network,” the statement stated.

NCC stated that this disconnection will subsist until otherwise determined by it.

According to the statement, Globacom was given the right to respond to the petition before the decision was reached by the NCC: “Globacom was notified of the application made by MTN and was allowed to comment and state its case”, the statement said.

And, the decision was reached following the commission resolution that Globacom was indeed culpable: “The Commission, having examined the application and circumstances surrounding the indebtedness, determined that Globacom does not have a sufficient or justifiable reason for non-payment of the interconnect charges. 

Recent industry statistics by the NCC indicate that Globacom, Nigeria’s second-largest Mobile Network Operator. has 61 million subscribers and about 27.8 per cent penetration rate. The telecoms operator was founded in 2003 (as Glo Mobile) by Nigerian billionaire, Mike Adenuga and Bella Disu.

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Not an unfamiliar threat for Globacom subscribers

This isn’t the first time Glo users have been exposed to similar threats.

Recall the MTN partial ban it placed on calls from Globacom subscribers for more than five days in 2019. The suspension was lifted following an intervention by major stakeholders in the dispute.

In 2018, NCC set the interconnection rate for calls at N3.90 per minute for 2G/3G/4G operators; and N4.70 for LTE operators, while the international termination rate was placed at N24.40. In December of the same year, NCC gave mobile network operators the power to disconnect faulting operators who had rising interconnection debts.

Taking advantage of this, MTN effected a partial restriction of mobile communication to Globacom’s 4.6 million subscribers.

Similarly, the Nigerian Communications Commission (NCC) suspended and reinstated regulatory services to Globacom only after the telecommunications cleared its outstanding debt obligations to the commission. The Commission had temporarily withdrawn the suspension of regulatory services to Globacom in a letter dated May 22, 2023, titled “Re: Continuous Breach of Commission’s Laws and Regulations.”

In another related incident, the Nigerian Civil Aviation Authority (NCAA) shut down a base station in Wuse 2 Abuja operated by Globacom due to a N5 billion debt. According to a letter released by the agency dated October 4, 2021, the NCAA claimed that it would have no choice but to shut down the masts across following Glo’s refusal to pay the due fees totalling N5 billion.

Broader implications of MTN’s partial disconnection of Globacom on Nigeria’s telecom landscape

Speaking of disrupted network dynamics, the partial disconnection introduces a significant disruption in the network dynamics between two major telecom operators. This event raises questions about the stability of partnerships and agreements within the industry, prompting a closer examination of financial dealings and contractual obligations between service providers.

The telecom industry’s resilience is put to the test as operators navigate financial disputes and partial disconnections. This episode may also serve as a case study for industry stakeholders, policymakers, and regulators to refine frameworks and guidelines for a more robust and resilient telecom sector.

From looking at the financial intricacies and regulatory oversight to evaluating industry-wide adaptability, the implications extend beyond the immediate parties involved but will shape the future landscape of telecom operations in the country.

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