NCC: Boosting Nigeria’s Economy With New International Termination Rate

The Nigerian Communications Commission (NCC) has recently announced a revised International Termination Rate (ITR), set to positively impact the Nigerian telecommunications industry and bring significant economic benefits to the country. Effective from September 1, 2022, the new ITR for voice services paid for terminating international calls on local networks in Nigeria has been raised to US$0.10, up from the previous rate of US$0.045.

In an effort to ensure fair competition and acknowledge the distinct characteristics of genuine market participants, the international carrier market has been categorized into two groups: MNOs/International Carriers and Small/Nigerian Transit Carriers/IDA Operators. This classification aims to create a level playing field in the industry.

Under the amended determination, Nigerian Transit Carriers/IDA Operators will now terminate inbound international calls in the network of domestic operators at a discounted rate of 21 percent on the US$0.10 ITR. This adjustment seeks to encourage growth and participation from local operators.

The decision to revise the ITR was based on comprehensive evaluations of stakeholder input, industry conditions, cost modeling outcomes, competition levels, and the Nigerian macroeconomic environment. The NCC emphasizes that the process was conducted transparently, ensuring maximum clarity for all parties involved while safeguarding commercially sensitive information.

The NCC expresses confidence that the new ITR will make a substantial contribution to the development of the Nigerian telecoms sector and bring benefits to subscribers, operators, and the nation as a whole. The revised rates will foster healthy competition, attract investments, and enhance the overall efficiency of the telecommunications market.

Additionally, the existing Mobile Termination Rates of N3.90 for Generic 2G/3G/4G Operators and N4.70 for new entrants (LTE)/Small Operators, as determined in 2018, will remain applicable for local call terminations until the NCC establishes new rates. This decision ensures stability in the domestic market while the commission continues its efforts to evaluate and update local call termination rates.

The revised ITR not only stimulates the telecommunications sector but also has wide-ranging economic benefits for Nigeria. It is expected to attract foreign direct investments, encourage infrastructure development, and promote job creation within the industry. As the telecommunications sector flourishes, it will contribute to the overall growth of the Nigerian economy, fostering technological advancement and increasing connectivity across the nation.

The NCC’s issuance of the new International Termination Rate signifies a positive step forward for Nigeria’s telecommunications industry and its economy. With the implementation of these revised rates, the sector is poised for remarkable growth, benefiting both industry stakeholders and the Nigerian population as a whole.

ncc.gov.ng