NCC Approves New Mobile Voice International Termination Rate

The Nigerian Communications Commission (NCC), has granted approval for a new Mobile Voice International Termination Rate (ITR) for to mobile network operators in the country.

The new ITR, which takes effect from tomorrow, September 1, 2022 brings to end the old rate that was issued by the NCC in November 25, 2021 and will remain valid and binding on Licensees until further reviewed by the
Commission.

According to the document sighted by TechTV Network, which was signed by the Executive Vice Chairman of the Commission, Prof Umar Danbatta, ITR for voce services paid by oversea carriers for terminating international calls on local networks in Nigeria shall be in US Dollars and at a fixe rate of $0.10.

The NCC stated that the approval for Dollar payment was given the operators to enable them receive an increasing rate in Naira when devaluation occurs adding that the ITR only apples to the cost of bring traffic to Nigeria but that the operators will continue to pay the regulated Mobile Terminating Rate.

The Commission said further that that to ensure a level playing field, the international carrier market has been classified into MNOS/international carriers and small/Nigerian Transit Carriers/IDA operators.

The explained that “The Nigerian Transit Carriers/IDAs shall terminate in-bound international calls in the network of domestic operators at a discount of 21 percent on the US$O.10. This discount is based on the same asymmetric corridor contained in Commission’s MTR Determination of 2018.

“The Mobile Termination Rates of N3.90 (for Generic 2G/3G/4G Operators) and N4.70 (For New Entrant (LTE)/Small operators determined in 2018 will continue to apply for local call terminations until a new Determination is made by the Commission.”

The document disclosed that the Commission reserves the right to review and amend the new ITR at any time stressing that “such review may be necessitated by a major change in the market conditions and/or the underlining principles of this Determination.”

The regulator warned that no licensee shall charge and /or receive effective rate per minute outside the
ITR rate determined saying that “Operators are no longer free to negotiate a rate above or below the fixed rate.”

The document further warned that “any other payment discounts, volume discounts and any other concession that has the effect of bringing the effective ITR lower than the rate determined above shall be deemed a contravention of
this Determination and will attract sanctions in line with the Nigerian Communications (Enforcement Process, etc.) Regulations, 2019.”

Recalling how it arrived at the new ITR, the Commission said that it carefully considered the information and additional insights provided by stakeholders following the commencement of the Determination, saying that “This is in addition to the cost model results, the state of competition in the sector and the Nigerian macroeconomic environment.”

It added: “We wish to reiterate that the process of arriving at the ITR has been conducted transparently with a view to providing maximum clarity to al parties without compromising the confidentiality of commercially sensitive information.

Danbatta assured that the results and the outcome of the various engagements, which resulted to the new ITR will make a significant contribution to the development of the telecoms sector in Nigeria and be beneficial to subscribers, operators and the country.

Previously, the Overseas/transit carriers for terminating înternational calls on local networks in Nigeria was 0.045 United States Dollars.