Chairman of Nigeria Communication Commission NCC, said the commission will soon
review the interconnection charges for voice services which has been on ground
Competition and Economic Analysis, Mrs. Josephine Amuwa, said this on Wednesday,
February 15, 2017 in Abuja at a “Stakeholder’s
Forum on Cost Based Study’’ for the purpose of mobile voice termination
rate. According to him, the reason is based on the current market dispensation.
study and have determined to review the current interconnection rates for voice
services which had been on the rail since April 1, 2013.
country’s communication market has seen incredible growth in both subscriber
numbers and traffic volumes.
witnessed changes in available technologies and other network elements,
including global financial markets which have an impact over inputs such as
cost of capital.
will inevitably affect the unit cost of providing services, including
interconnection and may lead to differences between regulated interconnection
rates and underlying costs.
result in differences between on-net and off net retail tariffs.
we ensure that interconnection services are not only fairly priced and
non-discriminative, but should reflect the cost providing such services in the
this regard that the commission has decided to review the rates set in its 2013
determination in the light of current market realities.”
examine the emergence of grey market activities in the telecoms industry in
refilling, call masking, and sim-box fraud as a result of the introduction of
an interim International Termination Rate for Inbound International traffic.’’
commission carried out a thorough selection process and appointed Messrs’ Price
ewaterhouseCoopers LLP (PWC) to among other things “carry out an impact
assessment on the subsisting interconnect regime.
on the subsisting interconnection rate regime and provide workable solutions.
need to have different termination rate for National/Domestic and international
Termination Rate for voice services using appropriate cost modeling techniques
for New Entrant(s)/Small Operators and Existing /Big Operators.
appropriate basis for Glide Path (if necessary); Develop a suitable definition
of a New Entrant (s) /Small Operator to enjoy the benefits of asymmetric
principle of guaranteeing participatory regulation, the stakeholders’ forum was
only to formally introduce the project consultant to the industry stakeholders,
but also to start the project.
statistical data is most critical to the success of determining appropriate
interconnection termination rates for the telecommunication industry.
will be invaluable.
field for all operators, and in line with international standard practice, NCC
shall ensure that interconnect rates reflect the cost of