Ukrainian regulator says termination rate cut will benefit end users

22 May 2020

Ukraine’s National Commission for State Regulation of Communications & Informatization (NCCIR/NKRZI) has issued a decision cutting the unified wholesale mobile termination rate (MTR) and long-distance voice call termination rate to UAH0.08 (USD0.00297) per-minute from UAH0.12, effective from 1 January 2021. The regulator based its decision on data from operators for 2019 showing the actual cost of terminating network traffic was UAH0.03-UAH0.06 a minute, and indicated that it will continue to reduce rates to gradually approach cost levels.

The NCCIR claimed that interconnection rate reductions will enable operators to offer consumers more attractive off-net calling tariff plans, with benefits for end users including: increasing the volume of package minutes for all types of telecommunications services for the same cost; reducing the cost of long-distance calls; and reducing the demand for owning several mobile SIM cards for different operators (due to varying inter/intra-network rates).