Telecoms

NCC Establishes ₦250,000 Fee For Temporary Telecom Service Authorisation

2024 World Consumer Rights Day


The Nigerian Communications Commission (NCC) has introduced an application fee of ₦250,000 for firms that wish to obtain an Interim Service Authorisation (ISA), which is a temporary license enabling telecom operators to trial new services before their complete market introduction.

This fee is specified in the newly published General Authorisation Framework of the Commission, a regulatory strategy designed to foster innovation while safeguarding consumer rights within Nigeria’s telecom sector.

According to the framework, startups, tech-focused firms, and current operators launching new services are allowed to conduct pilot trials in real market environments without the need for a complete telecom license first. The NCC indicated that this method enables service providers to evaluate technical viability, market interest, and operational hazards, while also allowing the regulator to assess service standards and consumer effects before broader deployment.

At the time of application, candidates must submit the ₦250,000 administrative fee. Those granted permission may also face further expenses associated with spectrum allocation and numbering resources, if applicable. These additional charges are distinct from the ISA fee.

The Commission clarified that this framework forms a part of its wider initiative aimed at updating Nigeria’s licensing processes and providing enhanced regulatory flexibility. During the announcement of the draft framework in July, Dr Aminu Maida, the Executive Vice Chairman and Chief Executive Officer of the NCC, remarked that new technologies frequently do not fit into current licensing classifications, necessitating regulatory changes.

He stated that this initiative seeks to achieve a balance between promoting innovation and protecting consumer rights as well as public interests.

Operators issued an ISA are allowed to assess their services under stringent regulatory oversight. Conditions include a cap of 10,000 customers, operations confined to designated locations, and ongoing surveillance by the Commission.

The authorisation is initially granted for three months and can be renewed once, extending the testing period up to six months. To be eligible, applicants must show that their proposed service is novel or considerably distinct from what is currently available. Furthermore, they are required to detail how existing regulations restrict the service, outline measures for consumer protection, and provide monthly progress updates throughout the testing duration.

Even though temporary regulatory leniency may be offered, obligations concerning data protection, security, and consumer rights remain fully applicable. The NCC reiterated that involvement in this framework does not assure the granting of a full telecommunications license, as any move to commercial implementation will rely on regulatory evaluations and the presence of suitable licensing categories.

Industry participants indicate that this framework could drive innovation while minimising the risks linked to unsuccessful service launches. By permitting operators to test before scaling, the NCC strives to motivate experimentation in areas like spectrum sharing, Open RAN technologies, and other connectivity alternatives, all without compromising service standards.

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