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The Nigerian Communications Commission (NCC) has said that the International Termination Rate (ITR) has been reviewed to N24.40 per minute.
The telecommunications regulator said in a statement on Saturday in Lagos, that the review of the interconnect charges was for inbound traffic.
“The Nigerian Communications Commission, on September 16, 2016 reviewed the termination rate for international inbound traffic from ₦3.90/min to ₦24.40/min.
“The interim rate will subsist pending the conclusion of the study of the Determination of Cost Based Pricing for Mobile Voice Termination Rates,” the commission said.
How It Affects You
If you are customer of Operator A wishes to call a friend who has an Operator B mobile. Operator A will charge the customer a fee per minute (the retail charge) for this call. Operator B will charge Operator A a fee for terminating the call on its network. This termination rate therefore forms part of Operator A's cost of providing the call to its customer.
Meanwhile, the News Agency of Nigeria (NAN) reports that increase in the ITR can be traced to a recommendation in a publication prepared by NCC’s Policy, Competition & Economic Analysis Department in 2015.
The recommendation was based on the premise that telecommunications service providers and government might prefer higher rates that bring in hard currency and can fund investment; expand domestic network; fund innovation; and improve quality of service.
The telecommunications regulator said in a statement on Saturday in Lagos, that the review of the interconnect charges was for inbound traffic.
“The Nigerian Communications Commission, on September 16, 2016 reviewed the termination rate for international inbound traffic from ₦3.90/min to ₦24.40/min.
“The interim rate will subsist pending the conclusion of the study of the Determination of Cost Based Pricing for Mobile Voice Termination Rates,” the commission said.
How It Affects You
If you are customer of Operator A wishes to call a friend who has an Operator B mobile. Operator A will charge the customer a fee per minute (the retail charge) for this call. Operator B will charge Operator A a fee for terminating the call on its network. This termination rate therefore forms part of Operator A's cost of providing the call to its customer.
Meanwhile, the News Agency of Nigeria (NAN) reports that increase in the ITR can be traced to a recommendation in a publication prepared by NCC’s Policy, Competition & Economic Analysis Department in 2015.
The recommendation was based on the premise that telecommunications service providers and government might prefer higher rates that bring in hard currency and can fund investment; expand domestic network; fund innovation; and improve quality of service.
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