NCC Establishes 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 telecommunications operators for the termination of international calls on local networks in Nigeria at $0.045.

The new rate is contained in the “International Mobile Termination Rate Determination” published by the Board on November 25, 2021. The rate of $0.045 is the floor price for ITR services and will come into effect on January 1, 2022. The rate must be paid in US dollars to allow Nigerian operators to receive an increasing rate in naira terms to account for the devaluation.

No licensee shall charge and/or receive an effective rate per minute that is less than the determined ITR floor rate. As such, payment discounts, volume discounts and any other concessions that have the effect of bringing the effective ITR below the determined rate will be considered a breach of the redetermination and will result in sanctions in accordance with Nigerian Communications (Disclosure Process). application, etc.) Regulations, 2019.

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

However, while the ITR only relates to the cost of bringing traffic to Nigeria, Nigerian operators will continue to pay the mobile regulated termination rate (MTR), the local termination rate between them.

The MTR of N3.90 for generic 2G/3G/4G operators and N4.70 for new entrant LTE (Long Term Evolution) operators, determined in 2018, will continue to apply to local call terminations until that a new tariff be determined by the Commission in accordance with its powers as set out in the Nigerian Communications Act (NCA), 2003.

The current regime of interconnection tariffs was continued by the Commission’s mobile termination (voice) tariff published on 1 June 2018. In the decision, it was stated that the ITR of N24.40 determined in 2016 will continue to apply until a new decision is made. do.

The naira-denominated ITR has had multiple negative impacts on local operators, which have been further exacerbated by episodes of naira devaluation that ultimately shifted Nigeria from a net receiver of international minutes to a net payer.

The Commission also observed that operators continue to face a series of challenges occasioned by the denomination of ITR in Naira, which necessitates a study based on the costs of ITR. In view of the above and in accordance with its statutory mandate to periodically review regulatory policies, the Commission has engaged Messrs’ Payday Advance and Support Services Limited to undertake a cost-based study of which voice MTR is best suited to the Nigerian telecommunications industry.

Commenting, the Executive Vice President (EVC) of the NCC, Prof. Umar Garba Danbatta, said arriving at the new MTR of $0.045, “the Commission carefully considered the information provided by stakeholders and decided 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 macro-economic environment.

He added that the process of obtaining the ITR 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 will benefit subscribers, operators and the country as a whole,” he said.

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

Sign:

Dr Ikechukwu Adinde
Director, Public Affairs,
December 20, 2021

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