NCC Begins Implementation Of New International Termination Rate

The Nigerian Communications Commission (NCC) has commenced implementation of the amended International Termination Rate (ITR) for the mobile (voice) Nigerian telecommunications industry starting September 1, 2022.

The ITR for voice services paid for terminating international calls on local networks in Nigeria is now set at $0.10, from the old rate of $0.045.

In a statement yesterday in Abuja, Director, of Public Affairs, Reuben Muoka noted that under the amended determination, the international carrier market has been classified into Mobile Network Operators (MNOs)/International Carriers and Small/Nigerian Transit Carriers/International Data Access (IDA) Operators to ensure a level playing field that recognizes the unique disposition and characteristics of genuine market participants.

According to him, The Nigerian Transit Carriers/IDA Operators shall terminate inbound international calls in the network of domestic operators at a discount of 21 per cent on the $0.10.

He explained that in determining the ITR, the Commission carefully considered information and insights from stakeholders at different meetings and fora, which reviewed the previous rate and the industry’s operating environment. This is in addition to the cost model results, the state of competition in the sector and the Nigerian macroeconomic environment.

Moka noted that arriving at the ITR was conducted transparently to provide maximum clarity to all parties without compromising the confidentiality of commercially sensitive information.

Meanwhile, the Mobile Termination Rates of N3.90 (for Generic 2G/3G/4G Operators) and N4.70 (for new entrants – Long Term Evolution (LTE)/Small Operators determined in 2018) will continue to apply for local call terminations until the Commission makes a new determination.

It would be recalled that on January 1, 2022, a termination rate took effect and was pegged at $0.045 but the announcement was greeted with outcry from stakeholders, which were composed largely of the International Data Access operators (IDA). They lamented that the $0.045, which was to be remitted in dollars, would cripple their business and make them just labour for the MNOs and other international carriers terminating calls on their networks in Nigeria.