Globacom Secures 21-Day Lifeline to Settle MTN Interconnect Fees Dispute, Averting Potential Subscriber Disconnection

Telecom Resolution Achieved: Globacom Granted 21-Day Extension to Settle MTN Interconnect Fees Dispute

In a critical development for Nigeria’s telecommunications landscape, Globacom, a major telecom operator, has been granted an additional 21-day grace period to resolve and clear interconnect fees owed to MTN.

The decision comes just a day after the Nigerian Communications Commission (NCC) had planned a phased disconnection.

NCC Announces Agreement: Parties Expected to Resolve Outstanding Issues

The NCC released a press statement announcing that an agreement has been reached between Globacom and MTN to address and resolve all outstanding issues, providing a renewed opportunity for an amicable settlement within the stipulated 21-day period.

Disconnection Notice and Outstanding Debt: MTN Granted Authority to Disconnect Glo Subscribers Over Unpaid Fees

On January 8, the NCC issued a disconnection notice to Globacom, granting MTN the authority to disconnect Glo subscribers due to accumulated unpaid interconnect fees, estimated at around ₦6 billion ($6.7 million).

The standard interconnect fee for local calls in Nigeria is ₦4.30k per minute.

Potential Disconnection Averted: Glo’s 61.39 Million Subscribers Spared, Resolution Window Opens

Had a phased disconnection occurred, Glo’s extensive subscriber base of 61.39 million would have been unable to call MTN users. However, a crucial detail was that MTN users would still have retained the ability to reach Glo users.

Glo Denies Outstanding Fees Claim: Dispute Over Interconnect Fees Stretches Over 15 Years

Glo, in response to the claims of unpaid fees, vehemently denied owing MTN any interconnect charges.

The longstanding dispute over interconnect fees has a history spanning more than 15 years, with multiple instances of MTN threatening disconnection.

In 2019, a similar threat resulted in a five-day disconnection, prompting Glo to pay around ₦2.6 billion out of a total ₦4.4 billion owed in interconnect fees. Airtel had also issued threats of disconnection during the same period.

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