Nigerian billionaire Mike Adenuga’s Glo faces service disruption over unpaid interconnect charges

Globacom Limited (Glo), one of the country’s leading telecom giants founded and led by billionaire businessman Mike Adenuga, is on the brink of a service disruption that may prevent its subscribers from calling MTN lines.

In a recent development that could have far-reaching consequences for telecom users in Nigeria, the imminent disconnection stems from the non-settlement of interconnect charges, raising concerns about potential disruptions to communication services.

The Nigerian Communications Commission (NCC) issued a public notice on Monday, signed by Reuben Muoka, director of the public affairs department. The notice revealed that the failure to settle interconnect charges might result in a disconnection between Glo and MTN, two major players in the Nigerian telecommunications sector.

According to the notice, the NCC has granted partial approval for the disconnection of Glo from MTN Nigeria. The regulatory body asserts that opportunities were given to Glo to address the situation, stating, “Glo was notified of the application made by MTN and was given the opportunity to comment and state its case.”

NCC’s verdict triggers 10-day call restriction for Glo subscribers

This comes nearly three months after leading telecommunications service providers, including Glo, remitted N154 billion ($200 million) to the Nigerian government as part of spectrum license renewal fees. The move follows speculation and reports of a contentious dispute between Mike Adenuga, worth $3.2 billion, according to Forbes, and the Nigerian government.

The NCC, in its statement, further explained that after a thorough examination of the application and the circumstances of the indebtedness, it was determined that Glo lacked sufficient or justifiable reasons for the non-payment of the interconnect charges.

Consequently, the NCC declared that “At the expiration of 10 days from the date of this notice, subscribers of Globacom (Glo) will no longer be able to make calls to MTN but will be able to receive calls.” It was emphasized that this partial disconnection will still allow in-bound calls to the Glo network.

Glo’s silence amplifies concerns: Subscribers on edge as NCC deadline approaches

Interconnect charges are fees that telecom operators pay to each other for using their networks to connect calls. Failure to settle these charges can strain relations between the involved parties and, ultimately, lead to service disruptions for consumers.

Industry observers point out that disputes between major telecom operators can have significant implications for subscribers, businesses, and the overall telecommunications sector. The situation is also likely to impact the competitive landscape of the Nigerian telecom market, potentially leading to shifts in consumer preferences and choices.

Glo has not released an official statement in response to the NCC notice. The looming disconnection has left subscribers anxious about potential disruptions to their communication services, emphasizing the importance of a swift resolution between the concerned parties to avoid any inconvenience to the public.