The Nigerian Communications
Commission has released a
new set of interconnection
rates for voice services for the
country's telecommunications
industry targeted at bringing
down call tariffs.
The review, which
will start from April
1, 2013, was
agreed on after comprehensive
consultations with various
stakeholders, the NCC said in a
statement on Thursday.
"The new termination rates,
which significantly reviewed
prices downwards, are informed
by the depth of competition in
the industry, while taking into
consideration the position of
new entrants and small
operators," the commission said
in the statement.
According to NCC, the
termination rates for voice
services provided by new
entrants and small operators in
Nigeria irrespective of the
originating network shall be
N6.40 from April 1, 2013; N5.20
from April 1, 2014; and N3.90
from April 1, 2015.
The termination rates for voice
services provided by other
operators irrespective of the
originating network shall be
N4.90 from April 1, 2013; N4.40
from April 1, 2014; and N3.90
from April 1, 2015.
The current rate, which is
symmetric to all operators, is
N8.2.
For new entrants and small
operators, the tariff drop will be
by 21.95 per cent from April 1
this year, while for other
operators, the drop will be by
40.2 per cent.
"This determination shall take
effect from April 1, 2013, and
remain valid and binding on
licensees for the next three
years until further reviewed by
the commission," the NCC
maintained.
According to the NCC, a new
entrant is a newly licensed
operator entering an existing or
new market within zero and
three years, while a small
operator, for the purpose of the
determination, is an existing
operator with a market share of
zero to 7.5 per cent in terms of
subscriber base.
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It will be recalled that the
current interconnection rate
regulation was implemented
through the NCC Interconnection
Rate Determination issued on
December 21, 2009. Since then,
the Nigerian communications
market has seen tremendous
growth in both, subscriber
numbers as well as traffic
volumes and available
technologies.
In June 2012, the commission
appointed
PricewaterhouseCoopers LLP to
undertake a cost study for voice
interconnection.
In line with its commitment to a
policy of openness,
transparency, fairness, and
participatory regulation, the
omission informed stakeholders
in July 2012 of its engagement
of PWC to advise on the review
of interconnection rates for
mobile and fixed telephony
services.
After series of meetings with
operators and other
stakeholders, PWC provided the
commission with
recommendations related to the
regulation of voice
interconnection.
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