Broadband Penetration-NCC: credit: NCC

NCC: New International Termination Rate to Take Effect From September 1

TECH DIGEST- Beginning tomorrow, September 1, $0.10 will be the new fixed international termination rate for phone services determined by the Nigerian Communications Commission (NCC). The NCC defines ITR as the cost of terminating international inbound traffic either by international carriers over international networks or to a point of interconnection (PoI) with domestic networks.

It represents the domestic mobile network operators in Nigeria’s exports of payment services. The NCC’s Executive Vice Chairman, Prof. Umar Danbatta, signed a new document yesterday titled “Determination of Mobile (Voice) International Termination Rate (As Amended) Issued by the NCC and dated August 25, 2022,” in which the Commission acknowledged that there were post-implementation difficulties that called for additional consultations with pertinent stakeholders.

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The document read in part: “This determination shall take effect from 1st of September 2022and will remain valid and binding on licensees until further reviewed by the Commission. This determination effectively repeals the Determination of Voice (Mobile) International Termination Rate issued by the NCC on 25th November 2021 which took effect from 1st of January, 2022.”

The Nigerian Transit Carriers/IDAs are required by NCC to terminate incoming international calls through the network of domestic operators at a reduction of 21% on the $0.10 rate. According to the commission, the discount is based on the same asymmetric corridor that was used to make its 2018 MTR Determination.

“ITR for voice services must be $0.10 for termination of international calls on local Nigerian networks by foreign carriers. The ITR will be paid in dollars, thus operators would earn an increasing rate in naira terms should the devaluation persist. The fixed fee for ITR services is $0.10. ITR solely refers to the cost of transporting traffic into Nigeria in dollars. Operators will keep paying the regulated MTR, according to the paper.

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