NCC: New telecoms operators, innovators to pay N250,000 to test ideas before market roll out

*The Nigerian Communications Commission requires applicants for the Interim Service Authorisation to pay N250,000 as an administrative fee, as part of the telecoms regulator’s initiatives to support new innovators, including startups or large companies, to demonstrate feasibility, assess risks, and validate their service ideas before reaching the market

Gbenga Kayode | ConsumerConnect

The Nigerian Communications Commission (NCC) has disclosed the applicants for the Interim Service Authorisation (ISA) are required to pay N250,000 as an administrative fee together with their applications for the General Authorisation Framework (GAF).

ConsumerConnect reports the NCC disclosed the directive is part of regulatory initiatives to support new telecoms innovators, including tech-driven startups or large companies, with a safe ecosystem to demonstrate feasibility, assess risks, and validate ideas before hitting the market.

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The telecoms sector regulatory Commission noted the supervisory intervention, contained in its General Authorisation Framework document, now allows new industry operators to test the market before product or service launch.

It is noted the GAF is an update of the Commission’s licensing process that has introduced more flexibility to its regulatory process in Nigeria.

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The measure also will enable the NCC to determine whether such fresh entrants (Telcos) are capable of providing quality service for consumers’ Quality of Service (QoE).

Earlier, the Commission had published a new licensing framework to foster innovation and expand opportunities for startups and technology-driven enterprises within the Nigerian telecoms ecosystem.

According to the industry regulator, the new framework affords new operators the opportunity to test the West African country’s vast telecoms market before launching their products or services.

The document further indicated that new Telcos are required to pay the applicable fees for Spectrum and Numbering.

In regard to the inherent benefits of the new-fangled initiative for the NCC and entire telecoms sector, the regulatory framework aims to make it easier for new and innovative Telcos to launch out.

Under the rules, operators are allowed to test their ideas in a controlled environment (sandbox) without needing a full licence, assisting them to test-run their ideas cum innovations before hitting the telecoms market.

Maida on NCC’s new licensing framework

Unveiling the draft licensing framework July last year, Dr. Aminu Maida, Executive Vic-Chairman and Chief Executive Officer (EVC/CEO) of NCC, had emphasised that the initiative recognises and accommodates “emerging services” not currently captured under the existing licensing regime.

Maida explained the regulatory model encourages experimentation and innovation while safeguarding consumer rights and public interest in the Nigerian telecoms space.

He also stated: “We are now at a turning point where the nature of innovation demands a regulatory paradigm that is not only responsive but enabling.”

Some key instruments in new General Authorisation Framework

Regarding some key regulatory instruments in the new General Authorisation Framework, the Proof-of-Concept (PoC) pilots helps to test novel solutions in real-world conditions and a Regulatory Sandbox to allow controlled testing of ideas like Open RAN and spectrum sharing.

The framework equally offers 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 consumers, about 10,000, and confined to specific, pre-approved locations for this purpose.

The authorisation lasts up to nine months, an initial three months, and it is renewable once for a maximum total duration of six months.

Others scope of the framework are that 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, and the applicant must explain why current rules are restrictive and show a solid plan to protect telecoms consumers and the market.

While NCC may give temporary exemptions from some regulations, consumer protection and data privacy laws remain intact.

The telecoms industry regulator as well noted that the ISA only acts as a platform to a full licence once a formal category is created.

This means that success under an ISA does not automatically lead to an operating licence.

The Commission emphasised that granting of a licence will be subject to its review.

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