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Business News of Wednesday, 31 August 2022

Source: www.legit.ng

MTN, GLO others to earn more as NCC announces new rate for international calls

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Nigerian telecom operators, MTN, Glo others will earn more revenue on international calls terminating on their network from outside the country from September 2022.

Following the Nigerian Communications Commission's rise in the International Termination Rate (ITR) from $0.045 to $0.10 (10 cents) per minute (NCC).

The commission disclosed this in a document published on its website titled the Determination of Mobile (Voice) International Termination Rate (As Amended).

What is ITR?

ITR is the rate paid to local operators by international operators to terminate calls in Nigeria.

The Punch reports that a fixed rate from NCC will ensure transparency in pricing by all and support the Commission’s effort to monitor compliance by all operators.

Details of the new rate

Earlier this year, IDAs complained that the $0.045 to be sent in dollars would destroy their businesses and force them to work for the MNOs. Indeed, last month, an official of one of the MNOs told The Guardian that the IDAs owed telecoms operators over $8 million in the first six months of the year after the $0.045 termination rate came into effect.

Hence the IDA, and MNOs proposed a fixed ITR at $0.08 and $0.15 respectively, for the commission’s consideration.

However, after a thorough evaluation, the commission resolved to peg the rate at $0.10.

The new tariff, according to the Commission, would be paid in dollars to avoid the operator from losing money if the Naira continues to depreciate.

NCC explains why the new rate

On the reason for backtracking on the floor price to a fixed price, the NCC noted,

"While the Determination established a floor price of $0.045 and allows MNOs to negotiate commercial terms with carriers, there were related indications that MNOs used this latitude to engage in discriminatory pricing that favored their related international carrier partners at the expense of Nigerian transit/IDA operators.

"To reduce the occurrence of such anti-competitive behavior, all parties at the meetings agreed that the Commission should adopt a fixed rate in place of the floor rate, which had offered a platform for talks with other carriers at a rate above the floor."