INTERCONNECTION CHARGE SETTLEMENT IN THE TELECOM SECTOR

The Nigerian telecommunications sector, a dynamic landscape driven by innovation and increasing connectivity, stands out as a high-performing industry within the country. It is, however, not without its share of challenges. The perennial issues around ‘right of way’, multiple taxation and absence of power persist. A new one is emerging in the realm of interconnection agreement settlements. 

An interconnect agreement, according to Wikipedia, is a business contract between telecommunications organisations to interconnect their networks and exchange telecommunications traffic. It invariably involves settlement fees based on call source and destination, connection times and duration, when these fees do not cancel out between operators.

Typically, interconnection agreements and the settlement are business-to-business (B2B) issue that would have little or nothing to do with the subscribers. But in extraordinary circumstances, it can involve the subscriber. The recent threat by the Nigeria Communications Commission (NCC) to permit one telecom operator to disconnect subscribers from another player brought the issue home to the subscribers. Thankfully it did NOT happen.

But it is important, in light of recent events, to shed light on regulatory intricacies, financial uncertainties, and technical hurdles that encumber or else aid the interconnection agreement settlement. 

The challenges in settling interconnection charges stem from many things including the complex regulatory frameworks that oversee the Nigerian telecommunications sector. Despite the progress made in creating regulations to support interconnection agreements, enforcing these agreements faces obstacles. Stakeholders are contending with challenges related to compliance, interpretation, and the efficacy of the regulatory body in ensuring adherence to established guidelines.

The NCC harps constantly on the importance of adhering to the terms and conditions outlined in interconnection agreements, urging Mobile Network Operators (MNOs) and telecom industry licensees to uphold these standards. Whether the operators listen is another matter entirely. 

Interconnection agreements, while crucial for fostering collaboration among telecom operators, can become breeding grounds for disputes. Disagreements over tariff structures, traffic volumes, and other terms often lead to protracted negotiations. Resolving these disputes promptly is imperative for maintaining a healthy telecommunications ecosystem, yet the complexities involved can impede swift settlements.

Elvis Eromosele, elviseroms@gmail.com