A new interconnect rate has been released by the Nigerian Communications Commission (NCC) to guide network operators on the termination of calls across operators.
The need for the new rate arose from the expiration in December 2012 of the old interconnection rate that was introduced in 2009.
According to the new rate which will come in full effect on April 1, 2013, major telecoms
companies will terminate calls on new entrants and smaller operators’ networks at NGN6.40, while the new and smaller operators will terminate calls on major operators’ network at NGN4.90.
In addition to the new rate, the commission added that these rates will be further reviewed downwards over the next three years that will end in 2015.
The commission defined a “new entrant” as a telecoms company that obtained license to operate in an existing or new market within a period of three years.
It also described a “small operator” as an existing operator with a market share of 0 to 7.5 per cent of subscriber base.
Interconnect rate is the term used to describe the rate a network operator originating a call will pay to the operator on whose network the call is terminated. The rate is essential in determining the tariffs for off-net calls involving several operators.
