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2025-01-02
Nigerian Telcos to See Revenue Increase from New International Call Rates
Nigerian telecommunication companies like MTN, Glo, and Airtel are set for a significant revenue boost in the coming months. This is due to a new policy implemented by the Nigerian Communications Commission (NCC) that increases the rate on calls originating from outside the country.
The NCC raised the International Termination Rate (ITR) from $0.045 to $0.10 (10 cents) per minute. This means that international operators will now pay more to Nigerian telecom operators to terminate calls on their networks. The new policy also stipulates that the ITR will be paid in dollars, protecting Nigerian operators from currency depreciation.
Previously, the NCC had set a floor price of $0.045 for the ITR, allowing mobile network operators (MNOs) to negotiate rates with international carriers. However, concerns arose that MNOs were using this flexibility to engage in discriminatory pricing, favoring their affiliates over Nigerian transit/International Data Access (IDA) operators. To address this issue and promote transparency, the NCC opted for a fixed ITR of $0.10.
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Furthermore, the new policy promotes transparency in pricing by eliminating the potential for discriminatory practices by MNOs. The fixed ITR ensures that all international carriers are charged the same rate, creating a more level playing field for Nigerian IDA operators.
However, it is important to consider the potential impact on consumers. The increased ITR could lead to higher call costs for Nigerians making international calls. The NCC should closely monitor the situation to ensure that MNOs do not take advantage of the new policy to raise call tariffs excessively.
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