The Nigerian Communications Commission (NCC) has concluded plan to begin new interconnection rates for voice services effective from April 1, 2013.

The new set of interconnection rates determination for voice services for the country’s telecommunications industry spanning 2012 and 2015, followed comprehensive consultations with various stakeholders by the NCC.

In a statement made available yesterday to National Mirror by the NCC Director of Public Affairs, Mr. Tony Ojobo, the commission said the new determination 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.

In the new interconnection regime, the NCC determines that 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.

Also, the termination rates for voice services provided by other operators in Nigeria 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 commission said 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.

It said: “New entrant is defined as newly licensed operator entering an existing or new market within 0 to 3 years. Small operator is defined, for the purpose of the determination, as an existing operator with a market share of 0 – 7.5 per cent in terms of subscriber base.”

It will be recalled that the current interconnection rate regulation was implemented through the Commission’s Interconnection Rate Determination issued on December 21, 2009.

Since then, the Nigerian telecommunications market has seen tremendous growth in both, subscriber numbers as well as traffic volumes and available technologies such as Third Generation (3G).

The current rate which is symmetric to all operators is N8.2. Speaking on the process adopted, Ojobo said: “In June 2012, the commission appointed PricewaterhouseCoopers LLP to undertake a cost study for voice interconnection.

A telecoms analyst, Mr. Akin Akinbo, said the implication of the crash in interconnection rates would means that telecoms subscribers will pay less for telecoms services in the next three years.


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