Voice services

NCC sets new international mobile termination rate for voice services

the Nigerian Communications Commission (NCC) determined the new international termination rate (ITR) for voice services paid by foreign telecom operators to terminate international calls on local networks in Nigeria at $ 0.045.

The new tariff is contained in the “Determination of the international mobile call termination tariff” published by the Commission on November 25, 2021. The tariff of $ 0.045 is the floor price for ITR services and will come into force on January 1, 2022. tariff must be paid in US dollars to allow Nigerian operators to benefit from an increasing rate in naira to account for the devaluation.

No license holder shall charge and / or collect an effective rate per minute below the determined ITR floor rate. As such, payment discounts, volume discounts and any other concession having the effect of reducing the effective TTI lower than the determined rate will be considered a violation of the new determination and will result in sanctions in accordance with the Nigerian Communications (process of application, etc.) Regulations, 2019.

The ITR Floor is the minimum that can be charged. Operators will be free to negotiate an above-floor tariff and this will be left entirely to commercial negotiation between operators and international carriers / partners.

However, while the ITR is only for the cost of routing traffic in Nigeria, Nigerian operators will continue to pay the regulated Mobile Termination Rate (MTR), the local termination rate between them.

The MTR of 3.90 N for generic 2G / 3G / 4G operators and 4.70 N for long-term evolution operators (LTE) of new entrants, determined in 2018, will continue to apply for terminations local calling until a new tariff is determined by the Commission in accordance with its powers as enshrined in the Nigerian Communications Act (NCA) of 2003.

The current regime of interconnection tariffs has been maintained by the Commission’s mobile call termination tariff (voice) published on June 1, 2018. In the decision, it was declared that the RTI of 24.40 N determined in 2016 will continue to apply until a new determination is made.

The ITR, denominated in naira, had multiple negative impacts on local operators, which were further exacerbated by episodes of naira devaluation that ultimately left Nigeria from being a net receiver of international minutes to that of a net payer. .

The Commission also observed that operators continue to face a series of challenges caused by the denomination of ITR in naira, requiring a cost-based study on ITR. In view of the above and in fulfilling its statutory mandate of periodic review of regulatory policies, the Commission engaged Messrs. Payday Advance and Support Services Limited to undertake MTR voice cost based study most suitable for the Nigerian telecom industry.

Commenting, the Executive Vice President (EVC) of NCC, Prof. Umar Garba Danbatta, said on arriving at the new MTR of $ 0.045, “the Commission has carefully considered the information provided by stakeholders and has taken a position on the parameters and regulatory measures in the light of relevant information such as international experience, the results of the cost model, the state of competition in the sector and the Nigerian macroeconomic environment.

He added that the process of obtaining the RTI had been conducted in a transparent manner with a view to providing maximum clarity to all parties without compromising the confidentiality of commercially sensitive information. “We are confident that the outcome of the review will make a significant contribution to the development of the telecommunications sector in Nigeria and benefit subscribers, operators and the country as a whole,” he said.

The EVC, on behalf of the NCC Board of Directors and Management, expressed the gratitude of the Commission to all operators and industry stakeholders, who have submitted information relating to the regulation of tariffs to ‘interconnection and costing models as well as to the consultant, for their participation in the process leading to the determination.

Sign:

Dr Ikechukwu Adinde
Director, Public Affairs,
20 December 2021

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