NCC approves N250k authorisation fee for new telcos to test their services

The Nigerian Communications Commission (NCC) has revealed that applicants for the Interim Service Authorisation (ISA) are to pay an administrative fee of N250,000. This was shown in the General Authorisation Framework document released by the commission. 

NCC has previously revealed a new licensing framework to foster innovation and expand opportunities for startups and technology-driven enterprises within the Nigerian telecommunications sector.

Under the new framework, new telco innovators such as startups or large firms are provided with a safe environment to demonstrate feasibility, assess risks, and validate ideas before going to market. The intervention allows new operators to test the market before launch and helps NCC determine whether such telcos are capable of providing quality service to subscribers.

According to the document, the N250,000 administrative fee will be submitted alongside the application for General Authorisation. In addition, new operators will be requested to pay the applicable fees for Spectrum and Numbering. 

For NCC and the telecoms industry, the new framework is aimed at making it easier for new and innovative telcos to launch. Under the rules,  operators are allowed to test their ideas in a controlled environment (sandbox) without needing a full license. It helps them test-run their activities before they roll out.

The General Authorisation Framework is an update to NCC’s licensing process, which introduces more flexibility to its regulatory process.

While unveiling the draft framework in July, Executive Vice Chairman of the NCC, Dr Aminu Maida, noted that the initiative recognises and accommodates emerging services not currently captured under the existing regime.

He added that the model encourages experimentation and innovation while safeguarding consumer rights and public interest.

“We are now at a turning point where the nature of innovation demands a regulatory paradigm that is not only responsive but enabling,” Maida said.

Also Read: NCC licensed 46 MVNOs in two years but only 2 are operational. Here is why.

What the NCC’s framework entails

The new framework introduces some key regulatory instruments, including Proof-of-Concept (PoC) pilots to test novel solutions in real-world conditions and a Regulatory Sandbox to allow controlled testing of ideas like Open RAN and spectrum sharing. It also provides an Interim Service Authorisation for services that fall outside current licensing categories.

Under the NCC’s supervision, new telcos will be provided with facilities to test their operations in a live and controlled market environment. The testing occurs in a real-world setting with a limited number of participating customers, about 10,000, and confined to specific, pre-approved locations.

According to the document, the authorisation lasts up to 9 months, an initial 3 months, and is renewable once for a maximum total duration of 6 months. 

Others scope of the framework are:

• During the testing phase, new telcos will be required to provide monthly reports under close NCC supervision.
• The service must be genuinely new or unique. 
• The applicant must explain why current rules are restrictive and show a solid plan to protect consumers and the market.
• While NCC may give temporary exemptions from some regulations, consumer protection and data privacy laws remain intact.

The regulator noted that the ISA only acts as a pathway to a full license once a formal category is created. This means that success under an ISA does not automatically lead to a license. Granting of a license will be subject to a review by the commission. 

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