The Nigerian Communications Commission (NCC) has approved the disconnection of Exchange Telecommunications Limited (Exchange) from MTN Nigeria over a N281.7 million interconnect debt, following the regulator’s efforts to mediate a resolution between the two parties.
A reliable telecom industry source confirmed that the debt in question was undisputed, with both MTN and Exchange acknowledging the validity of the sum. The debt stemmed from unpaid invoices for the termination of local interconnect services between May 2023 and June 2024.
MTN had formally brought the matter to the NCC’s attention on September 2, 2024, seeking permission to disconnect Exchange due to its failure to settle the outstanding debt within the 30-day payment period stipulated in their agreement.
Pre-Disconnection Efforts
The NCC acted as an arbiter in two pre-disconnection meetings to resolve the impasse amicably. At the first interim disconnection hearing on September 24, 2024, Exchange was required to demonstrate its commitment to resolving the issue by paying N27.5 million to MTN, which it did.
However, at the final disconnection hearing held on October 4, 2024, the parties failed to reach a resolution. The NCC, therefore, invoked the provisions of the Nigerian Communications Act, 2003, and the Guidelines on Disconnection Procedures to grant MTN the approval to proceed with the disconnection.
Grace Period and Broader Impact
MTN is mandated to grant a five-day grace period before disconnecting Exchange. This provision allows other companies that rely on Exchange’s services to make alternative arrangements for routing their traffic.
Exchange Telecommunications Limited, established in 2001, operates as a local and international interconnect carrier. The company, which boasts four nationwide Points-of-Interconnect connected via a fiber ring for redundancy and efficiency, describes itself as Nigeria’s largest interconnect carrier.
NCC’s Statement
In a public notice, the NCC clarified its decision, citing Exchange’s inability to provide sufficient justification for its non-payment of interconnect charges.
“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,” the NCC stated.
The regulator further outlined the conditions of the disconnection:
The disconnection aligns with Section 100 of the Nigerian Communications Act, 2003, and the Guidelines on Procedure for Granting Approval to Disconnect Telecommunications Operators, 2012.
At the expiration of the five-day notice, MTN will cease passing voice and data traffic through Exchange and will utilize alternative channels for interconnecting with other network service providers.
The NCC emphasized that the disconnection would remain in effect until otherwise determined by the Commission.
Background on Exchange Telecommunications
Under new management since 2015, Exchange Telecoms resumed operations and quickly became the largest clearinghouse in Nigeria within 18 months. In 2016, the company expanded its operations to Telehouse in London after securing an International Data Access (IDA) license, establishing itself as a preferred third-party carrier for Nigerian destinations.
With the NCC’s decision, stakeholders in the telecommunications sector will be watching closely to see how this disconnection impacts the broader ecosystem and whether it prompts renewed dialogue between the two companies.
