NCC Issues New International Termination Rate

By: Prudence Okonna 

The Nigerian Communications Commission (NCC) has issued an amended determination of Mobile (Voice) International Termination Rate (ITR) for implementation in the Nigerian Telecommunications Industry, effective from September 1, 2022. 

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

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.

The Nigerian Transit Carriers/IDA Operators shall terminate inbound international calls in the network of domestic operators at a discount of 21 percent on the US$0.10.

In determining the ITR, the Commission carefully considered information and insights provided by 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.

The Commission reiterates that the process of arriving at the ITR was conducted transparently with a view to providing maximum clarity to all parties without compromising the confidentiality of commercially sensitive information.

It expressed confidence that the new ITR, the outcome of the various engagements, will make a significant contribution to the development of the telecoms sector in Nigeria and be beneficial to subscribers, operators, and the country at large.

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.