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Interconnectivity Rates for Telecoms to Drop

By on December 11, 2012

The over 100 million active mobile subscriber base in Nigeria, are set to enjoy new reduced and affordable call rates between telecommunications networks.

This comes at a time the Regulatory body for the Mobile Telecommunications Industry the Nigerian Communications Commission (NCC)  is set to review a new price regime for  Industry players even as the current regime is to expire by December 31, 2012.

The consideration for a New interconnectivity rate will affect the local call tariffs in the country, a development that is appealing and pleasant to Nigerians who continue to bemoan  the current interconnectivity rates.

It will be recalled that the NCC Parliament for the year 2012 had representatives of subscribers in the Nation complaining  about their challenges with interconnnectivity local tariff rates.

With the Intervention of the Communication Commission again on the price regime of the call rates, Nigerians will be encouraged to use their lines, which means more revenue for the Telcos in the country.

Industry players like Airtel and Globacom want the interconnectivity rate to be reviewed downwards from the current price of N9.00, which they believed  was too high for the business.

Comparatively an Airtel Nigeria Executive in his analysis stated that the Interconnect price regime in India, is as low as N5.00, and believes that Nigeria can come to that level which will bring a boost to the Industry.

The current price regime of December 2006 by  review shows that it oos favourable to the operators as they take N11.52  for any call originating from fixed lines and any one terminating on a GSM Network.

It is expected that the new price regime will encourage more competition amongst the operators, increase the subscriber base and empower existing ones to use their lines.