Connect with us

News

NCC concludes cost-based study on international termination rate determination

Published

on

Nasiru Yusuf

The Nigerian Communications Commission (NCC) has concluded the process for determining the cost-based price of Mobile International Termination Rate (ITR) to ensure healthy competition on traffic handling for voice services between local and international operators in Nigeria.

KANO FOCUS reports that the Commission made this known at the final Stakeholders’ Forum for the presentation of the study on cost-based pricing of mobile ITR, undertaken by Messrs Payday Advance and Support Services Limited, held at the Commission’s Head Office in Abuja on Tuesday, June 8, 2021 with Management Staff of the Commission physically in attendance while other critical industry stakeholders participated virtually.

A statement sent to KANO FOCUS by commission’s spokesperson Ikechukwu Adinde said the forum was convened by the NCC to formally present the findings from the study, which commenced in March, 2020, to industry stakeholders and to solicit further perspectives, insights and other input on the findings towards a mutually realistic termination rate for international voice traffic in Nigeria.

Speaking at the forum, the Executive Vice Chairman of NCC, Umar Garba Danbatta, said the cost-based study became imperative, following previous efforts at finding an optimum price for the termination of international voice services that will be beneficial to all relevant industry stakeholders.

Danbatta said that the “overriding need for regulatory options and intervention in relation to the international termination rate in the voice market segment is predicated on some intractable challenges, most common with economies with severe macroeconomic volatility such as ours.”

Going down memory lane with respect to MTR determination in the Nigeria’s telecom industry, the EVC said, in 2013, the Commission issued a Determination stating that mobile Termination Rates (MTR) are the same irrespective of where the call originated. He, however, stated that this was misconstrued by operators at that time to mean that ITR should be the same rate as the MTR, consequently ignoring the international cost portion.

“Arising from these is the persistent fact that Nigeria’s ITR is below that of most countries with which it makes and receives the most calls, making Nigerian operators perpetual net payers. The obvious implication of this is seen in the attendant undue pressure on the nation’s foreign reserves, which continue to get depleted by associated net transfers to foreign operators on account of this lopsidedness,” Danbatta explained.

Danbatta further stated that regulating the ITR is imperative for developing countries, such as Nigeria, with volatile currencies in order to prevent or mitigate the imbalance of payments with international operators. He also said the Commission was faced with the challenge of arriving at a rate that will balance the competing objectives of economic efficiency while, at the same time, allowing operators the latitude to generate reasonable revenues.

He informed the forum however, that “where ITR is not regulated, it tends to converge to the MTR and for a market like Nigeria with major supply side challenges, the socio-economic implications and attendant backlash can only be imagined.”

In her comments, the Director, Policy, Competition and Economic Analysis, NCC, Yetunde Akinloye, corroborated the EVC, noting that the study was intended to compliment and consolidate the initial work done by the Commission which had also culminated in the MTR Determination published in June 2018.

According to her, the ITR previously determined was based on actual benchmarking with countries of similar characteristics to Nigeria, but the findings from that study were faced by major national macroeconomic management challenges, ultimately pointing to the need for an ITR that is cost-based, consistent with the MTR.

ITR is the rate paid to local operators by international operators to terminate calls in Nigeria as contrasted with MTR, which is the rate local operators pay to another local operator to terminate calls within the country.

Meanwhile, Danbatta has reiterated the NCC’s commitment “to continuously provide a conducive environment and level playing field for the effective interplay of factors that would engender sustained market development and growth, while ensuring the provision of qualitative and efficient telecommunication services to the consumers”.

The Nigerian Communications Commission (NCC) has concluded the process of determining the cost-based price of Mobile International Termination Rate (ITR) to ensure healthy competition on traffic handling for voice services between local and international operators in Nigeria.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Headlines

Ganduje appoints new Emir of Gaya

Published

on

Alhaji Aliyu Ibrahim Gaya

 

Nasiru Yusuf

Governor of Kano State Abdullahi Ganduje has in the early hours of Sunday announced the appointment Aliyu Ibrahim as the new emir of Gaya.

KANO FOCUS reports that Mr Ibrahim succeeded his late father, Ibrahim Abdulkadir who died on Wednesday at the age of 91 after protracted illness.

The Secretary to the State Government, Alhaji Alhaji announced the appointment on behalf of the Governor.

According to Alhaji, “Kano State Governor, Abdullahi Umar Ganduje, by the power conferred on him by the Kano Emirate law 2020 as amended has approved the appointment of Alhaji Aliyu Ibrahim-Gaya as the new emir of Gaya.

“The appointment followed the recommendation by the Gaya Emirate kingmakers after presentation of three candidates from the Governor appointed Aliyu Ibrahim Gaya as the new Emir,” he said.

The kingmakers include, Alhaji Alhaji (Wazirin Gaya), Wada Aliyu (Madakin Gaya), Bashir Albasu (Makaman Gaya), and Jafar Usman (Turakin Gaya).

Until his appointment the new Emir was the Chiroman Gaya.

The late Emir of Gaya, Ibrahim Abdulkadir died at the early hours of Wednesday after a protracted illness.

He is believed to be the oldest  (in age) among the five First Class Emirs in Kano state.

Before his ascension to the throne as the first historic Emir of Gaya, he was the District Head of Kunchi and Minjibir, at different times.

Gaya Emirate is one of the four new Emirates created by the Governor Ganduje administration in 2019.

Continue Reading

Headlines

Photo News: Emir Sanusi visits Sultan of Sokoto

Published

on

Aminu Abdullahi

The former Emir of Kano has on Monday paid a courtesy visit to Sultan of Sokoto Muhammad Sa’ad Abubakar lll.

Kano Focus reports that the pictures of the visit were published on a Facebook page linked to former Emir named ‘Sanusi ll Dynasty’.

Though the reason of the visit was not stated, but the former Emir has paid similar visit to Lamido of Adamawa in his capacity as leader of Tijjaniyya sect in Nigeria.

Emir Muhammad Sanusi ll

Continue Reading

Headlines

Kano to revive bilateral relationship with Pakistan

Published

on

Aminu Abdullahi

Kano State Government has expressed commitment to revive the long existing relationship with Pakistan.

KANO FOCUS reports that Governor Abdullahi Umar Ganduje gave the assurance on monday while receiving the Pakistani High Commissioner to Nigeria Muhammad Tayyab Azam at the Government House.

Ganduje represented by his deputy Nasiru Yusuf Gawuna said Kano endowed with lots of potentials is open for people to come and invest, particularly those from Pakistan.

“We are happy for showing commitment towards reviving the long relationship between us. I can remember the partnership we have in the engagement of Pakistani teachers in our schools which has yielded a lot today.”

“Even in the area of agricultural mechanization we have partnered with Pakistan especially in the supply of tractors to our farmers,therefore I feel if we continue to explore agriculture it will be beneficial to both Kano and Pakistan”.

The Governor also commended Pakistan for showing interest in reviving the bilateral relationship with Kano State.

In his remarks the Pakistani High Commissioner Muhammad Tayyab Azam described the visit to Kano as historic and important being the first state he visited since assuming office.

“I know the importance of Kano as hub of business in Nigeria, after Lagos Kano is next where there is business opportunity”.

“There was a time in Kano when most schools   have many Pakistani teachers..my aim is to bring back that relationship”.

He however pointed out that Kano and Pakistan have similarities in both values and culture therefore it is important to deepen the relationship so as to sustain the partnership in  the areas of health and agriculture as that will create opportunities for our people towards boosting the economy.

The High Commissioner was accompanied during the visit by Pakistani Consul General in Kano Ahmed Ibrahim Yakasai.

Continue Reading

Trending