NCC begins new international calls termination rate regime

The Nigerian Communications Commission (NCC) has introduced a new international termination rate (ITR), for voice services paid by overseas telecom carriers for ending international calls on local networks in Nigeria.

ITR is the cost of bringing call traffic into Nigeria. It represents payments service exports by the Nigerian Domestic Mobile Network Operators.

According to the commission, the new ITR, which is $0.10 (10 cents per minute) as against the earlier $0.045, takes effect from today, September 1.

Earlier this year, a termination rate, took effect and was pegged at $0.045 but the announcement was greeted with criticism from stakeholders, especially the International Data Access operators (IDA).

Explaining the reason for soft-pedaling on the floor price to a fixed price, the NCC in a document on its website noted, “While the Determination had set a floor price at $0.045 and gives the MNOs room to negotiate on commercial terms with carriers, there were related indications that MNOs took advantage of this latitude to engage in discriminatory pricing that favours their related international carrier partners to the detriment of the Nigerian transit/IDA operators.

“To check the incidence of such anticompetitive disposition, it was agreed by all parties at the meetings that a fixed rate should be adopted by the Commission, in place of the floor rate which had provided a platform for negotiations with various carriers at a rate above the floor.

“It was further agreed that the present Determination should be amended to include this new fixed rate.”