After moves by telecom sector regulator, the Nigerian Communications Commission (NCC) to broker a peaceful resolution of the impasse occasioned by the N281.7million interconnect debt owed MTN Nigeria by Exchange Telecommunications Limited (Exchange), the regulator decided to give the former the green light to disconnect the latter.
According to a reliable telecom industry source, the debt in question is undisputed, implying that the two operators agreed that indeed the N281.7 million debt existed, not inflated or deflated.
MTN brought the matter to the attention of the NCC via Sept 2, 2024 seeking its permission to disconnect Exchange because of accumulated debt which is contrary to the letters of the agreement which states that such invoices must be settled within 30 days.
The ground MTN sought to get the imprimatur of NCC to disconnect the local and international interconnect carrier was its failure to pay within 30 days.
The N281.7 million debt in question, according to the sources, was for the termination of local interconnect services between May 2023 and June 2024.
Before the final decision, the two parties had held two pre-disconnection meetings with the NCC as arbiter
The first meeting interim disconnection hearing took place Sept 24, 2024 and it was agreed that to show the commitment and fidelity of Exchange to the agreement, it should pay N27.5million to MTN which was paid.
At the final disconnection hearing on Oct 4, 2024, both parties were unable to reach an agreement forcing the Commission to act in line with the Communication Act and Guideline on Disconnection.
MTN however is expected to grant Exchange a five days grace period before snapping its support services to Exchange. This, it was gathered, was to allow other companies that would be affected by the decision of MTN to make alternative arrangements on how to route their traffic.
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According to information sourced from its website, Exchange Telecommunications Limited is a local and international interconnect Carrier. The largest in Nigeria, it has four Points-Of-Interconnect nationwide connected via a fibre ring to ensure redundancy, stability and efficiency.
“We are licensed by the National Communications Commission, Nigeria and operate under two licenses: Interconnect Exchange International Data Access,” the company explained.
The NCC had in a statement endorsed by its Director, Public Affairs, Reuben Muoka, explained: “The NCC hereby notifies the public that approval has been granted for the disconnection of Exchange Telecommunications Limited (Exchange) from MTN Nigeria Communications Limited (MTN) as a result of non-settlement of interconnect charges.
“Exchange was notified of the application and was given the opportunity to comment and state its case. The Commission, having examined the application and circumstances surrounding the indebtedness, determined that Exchange does not have sufficient reason for non-payment of the interconnect charges.
“The public is, therefore, requested to take notice that: 1. The Commission has approved the Disconnection of Exchange to MTN in accordance with Section 100 of the Nigerian Communications Act, 2003 and the Guidelines on Procedure for Granting Approval to Disconnect Telecommunications Operators, 2012; 2. At the expiration of 5 (Five) days from the date of this notice, MTN will discontinue passing voice and data traffic through Exchange and will, thereafter, utilise alternative channels in interconnecting with other Network Service Providers.
“Please note that this disconnection will subsist until otherwise determined by the Commission.”
Exchange Telecommunications Limited was created in 2001 and awarded the Interconnect Exchange license. Under new management in 2015, Exchange Telecoms resumed operations on the 14th of February 2015 and became the largest clearing house in Nigeria within 18 months. In 2016, Exchange Telecoms was awarded the IDA license and opened a presence in Telehouse, London. We have since become the preferred third party carrier for Nigeria destinations.