A new interconnect regime has been approved by the board of the Nigerian Communications Commission (NCC) for telecom operators. The move according to NCC, signals the beginning of the possible reduction of the mobile phone calls in the country.
“It is being anticipated that the new interconnect rates will lead to substantial reduction in mobile retail tariffs in Nigeria while the fixed tariffs will experience some increase”, said.
NCC – the country telecom industry regulator. The Commission said in a statement yesterday that after due consideration of the possible fallout of the new interconnect rates, NCC is satisfied that the introduction of the new rates will be to the overall benefit of subscribers and the industry.
The commission said “the result of the Industry Cost Study revealed that the major fixed services operator, NITEL, which has the largest number of fixed lines in the country, might have been providing services below cost. This was indeed responsible for some of the financial problems that have been associated with NITEL over the years”.
“Today, about 95 per cent of telephone users in the country are on mobile lines which imply that only a small percentage use fixed lines, most of which are in offices and in a few homes of high net-worth individuals.
“A substantial drop in mobile rates therefore has the effect of impacting on more subscribers and the bulk of users of telecom services in Nigeria”, said NCC study.
The Commission considers it important that efforts should not be spared in making sure that mobile call rates continue to drop to enable more Nigerian subscribers enjoy the benefits of the growing subscriber base in the country.
This is already happening with recent publications of rate cuts by certain mobile networks. The Commission also believes that the coming weeks will witness tariff adjustments that will be to the overall interest of the subscribers.
NCC assured subscribers to look forward to more of such benefits as the new interconnect regime begins to impact positively on the industry.
The new regime according to NCC came into effect on September 22, 2006, saying the interconnect rates should be cost based and the new rates were arrived at following months of cost study and consultations with the industry.