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NCC fixes $0.10 as new termination rate for international calls

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NCC fixes $0.10 as new termination rate for international calls

The Nigerian Communications Commission, NCC, has fixed $0.10 as the new International Termination Rate for voice services paid by overseas telecom carriers for ending international calls on local networks in Nigeria.

The ITR made reference to the cost of bringing call traffic into Nigeria, and it was increased from the $0.045 initially presented in December last year as a floor price.

The Commission said the new rate, which would take effect September 1, 2022, was the fixed rate for ITR services.

It also noted that international operators were mandated to pay local operations in dollars.

This is according to a document on the Determination of Mobile (Voice) International Termination Rate (As Amended) as of August 25, 2022, which is available on the NCC website.

On the reason for backtracking on the floor price to a fixed price, the NCC 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 speculations that MNOs took advantage of this latitude so as to involve in discriminatory pricing that favours their related international carrier partners to the disadvantage of the Nigerian transit/IDA operators.

“To check the incidence of such anti-competitive 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.”

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