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Nigerian regulator hires consultant for interconnect review

The Nigerian Communications Commission (NCC) has hired consultants PwC to carry out an impact assessment on the interconnect regime, reports Biztech Africa. The NCC’s chair, Umar Danbatta, speaking at a stakeholder forum, said the review had become necessary in view of the changes in the sector. “Since the last determination, the Nigerian communications market has witnessed tremendous growth in both subscriber numbers as well as traffic volumes. The scale of changes will inevitably affect the unit cost of providing services including interconnection and may lead to differences between regulated interconnection rates and underlying costs which in turn may result in differences between on-net and off-net retail tariffs. It is very important that we ensure that interconnection services are not only fairly priced and non-discriminative but should reflect the cost of providing such services in the market.” PwC will also determine if there is need to have different termination rate for national/domestic and international traffic; and determine the mobile termination rate for voice services using appropriate cost modelling techniques for new entrants and small operators, and existing operators. According to Danbatta, the move is in line with the NCC’s principle of participatory regulation, saying that the forum was convened to introduce the consultant to the industry stakeholders. “The supply of industry statistical data is crucial to the success of determining appropriate interconnection termination rates for the telecoms industry,” he told the carriers, adding that it is the duty of the NCC to create a level playing field. Read more

  • Wednesday, 22 February 2017

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