ALTON expresses concern over MTN – Glo Interconnect (Debt) faceoff
The Association of Licensed Telecoms Operators of Nigeria (ALTON), has expressed worry over the ongoing interconnect (debt) feud between MTN Nigeria and Globacom.
ALTON Chairman, Engr Gbenga Adebayo, emphasized that the interconnect debt has the potential to breed distrust within both ALTON’s members and the telecommunications industry as a whole.
He expressed concern about the potential destructive impact on growth and the slowdown of interconnectivity. Adebayo highlighted that it’s an internal matter being actively addressed for resolution, underscoring its seriousness and expressing hope that it won’t escalate beyond reasonable measures.
On Monday, the Nigerian Communications Commission (NCC) formally approved the partial disconnection of Globacom (Glo) from the MTN network, citing a lack of cooperation in debt payment as the primary reason.
Chief Deolu Ogunbanjo, President of the National Association of Telecoms Subscribers of Nigeria (NATCOMs), welcomed the development and noted that the challenge related to interconnect debt has persisted for the past decade.
Ogunbanjo questions why Globacom shouldn’t have promptly paid the money, emphasizing that these are revenues collected instantly when calls are made.
“This is a good development so that no one stifles the other from existence. I believe it will serve other operators a lesson too. The interconnect debt has been a debilitating disease in the sector. An operator collects money upfront and refuses to remit when it is supposed to. I think that is bad,” he stated.
Also Read: Interconnect debt: MTN gets approval to disconnect Glo
Commending the NCC’s action, the NATCOMs boss, recalling efforts since 2008 to prompt Glo to pay interconnect debt, suggested applying similar service withdrawal to banks withholding the N200 billion USSD owed to telecom operators.
Ogunbanjo urged Globacom’s management to fulfill their obligation and settle the debt.
“This will tell subscribers that Glo is a debtor firm. It will also give room for mobile number portability (MNP) to thrive because, if the matter is not resolved within time and people are not able to call, there will be an exodus of subscribers from Glo to another network,” he said.
An interconnect debt is a liability accumulated by an operator for terminating calls on another network. Predominantly covered by pre-paid customers on a specific network, addressing these liabilities has been a persistent challenge in the industry for over 15 years, now escalating to a threatening level.
Interconnection ensures a seamless network experience for users. Consequently, subscribers do not need to be aware of the network operator used by the person at the other end, highlighting the interconnected nature of telecommunications.
These debts extend beyond Mobile Network Operators (MNOs) and encompass various layers of the sub-sector, involving Value-Added Service (VAS) providers to MNOs, Internet Service Providers (ISPs) to MNOs, MNOs to International Data Access (IDAs) operators, and even among telecommunications companies to tower companies (towercos).
