NCC calls for reduced interconnect rates

EXECUTIVE Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Ernest Ndukwe has called for a change in the Short Messaging Services (SMS) tariff from prepaid customers.

He said a situation prepared subscribers pay more than their post-paid counterpart is unacceptable just as he advised operators to ensure that the interconnection rate is reduced to at least N5 for SMS.

Dr. Ndukwe said that the present practice of between N9 and N10 as interconnect rate is unacceptable, advising that operators should work out an appropriate rate that is uniformed to encourage the use of SMS as an alternative platform to voice in the country.

Speaking during the recent consultative forum with operators and consumers in Lagos, he said, that the commission consistent with its participatory regulatory principles, before arriving at major decision that will impact on the industry, has assembled concerned stakeholders to participate in deliberating on the need for a reduction of SMS tariff towards encouraging telecommunications subscribers to effectively utilize SMS platform for communications.

Dr. Ndukwe also said the commission refrains from price regulation, even though it has the right to dictate price because it believes in a competitive market but when the commission feels that the cost is too high it would intervene.

According to the NCC boss, the reduction in interconnect rate which would ultimately lead to reduction in charges on SMS would be good for the industry and for the consumers.

Dr. Ndukwe said the lower tariff on SMS will not only reduce the pressure on voice but also increase the utilization of SMS as medium of choice of communication for consumers.

On the disparity in rate between pre-paid and post-paid subscribers, he described it as man’s inhumanity to man, wondering why pre-paid consumers who are in the majority in the country should pay more stating that in places where post paid consumers pay more this may be understood but that since the operators make more money from prepaid consumers, they should not be treated that way.

"Let Nigeria take the lead from others by charging less on the prepaid because they are in the majority in the country," he said.

He expressed thanks to the operators present for their positive attitude and willingness to cooperate with the commission on the need for reduction of the SMS rates.

Some of the operators who attended the forum included, Zain, Globacom, Zoom, Intercelluar, Visafone, MTN, Multi-Links Telkom, Starcomms and Etisalat.


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