By The Nigerian Communications Commission (NCC) has approved a ₦250,000 administrative fee for companies seeking an Interim Service Authorisation (ISA), a permit that allows new telecommunications operators to test their services before full commercial rollout.
The development is contained in the Commission’s newly released General Authorisation Framework, a regulatory initiative aimed at encouraging innovation while maintaining consumer protection within Nigeria’s telecom sector.
Lowering Barriers for Telecom Innovation
Under the new framework, startups, technology-driven firms, and existing operators introducing novel services can conduct pilot tests in real market conditions without first obtaining a full telecom licence.
The NCC says this approach allows service providers to assess technical feasibility, market demand, and operational risks, while giving the regulator an opportunity to monitor service quality and consumer impact before large-scale deployment.
Application Fee and Other Charges
Applicants are required to pay the ₦250,000 administrative fee when submitting a request for Interim Service Authorisation. Successful applicants may also be liable for additional charges related to:
-
Spectrum allocation, where applicable
-
Numbering resources, depending on the service being tested
These costs are separate from the ISA application fee.
NCC Explains the Rationale
The Commission described the framework as part of efforts to modernise its licensing process and introduce flexibility into a traditionally rigid regulatory system.
Speaking during the unveiling of the draft framework in July, the Executive Vice Chairman and Chief Executive Officer of the NCC, Dr Aminu Maida, said emerging technologies and services often fall outside existing licence categories, making regulatory adaptation necessary.
According to him, the framework balances innovation with the protection of consumer rights and public interest.
How the Interim Service Authorisation Works
Operators granted an ISA are permitted to test their services under NCC supervision, subject to strict conditions, including:
-
A maximum of 10,000 customers
-
Operations limited to approved locations
-
Continuous monitoring by the Commission
The authorisation is valid for an initial three-month period and may be renewed once, allowing testing for up to six months.
Participation Requirements
To qualify, applicants must demonstrate that their service is new or significantly different from existing offerings. They are also required to:
-
Explain why current regulations are restrictive
-
Provide clear consumer protection measures
-
Submit monthly progress reports during the testing phase
While temporary regulatory relief may be granted, obligations relating to data protection, security, and consumer rights remain fully enforceable.
No Automatic Licence Approval
The NCC emphasised that participation in the framework does not guarantee the issuance of a full telecom licence. Any move toward commercial deployment will depend on regulatory review and the availability of an appropriate licensing category.
Implications for Nigeria’s Telecom Sector
Industry stakeholders say the framework could encourage innovation while reducing the risk of failed service launches. By allowing telcos to test before scaling, the NCC aims to promote experimentation in areas such as spectrum sharing, Open RAN technologies, and alternative connectivity models—without compromising service quality.
