NCC Approves Authorisation Fee For New Telcos to Test Their Services

The Nigerian Communications Commission (NCC) has approved an administrative fee of ₦250,000 for applicants seeking an Interim Service Authorisation (ISA)—a permit that allows new telecom operators to test their services before fully entering the market.

The fee was disclosed in the General Authorisation Framework recently released by the regulator, marking a key step in the NCC’s plan to lower entry barriers and encourage innovation in Nigeria’s telecommunications sector.

A Regulatory Sandbox for Telco Innovation

The General Authorisation Framework is part of a broader licensing overhaul by the NCC aimed at supporting startups and technology-driven telecom firms, as well as larger operators introducing new services.

Under the framework, eligible applicants can test new ideas in a controlled, real-world environment without first obtaining a full telecom licence. The goal is to allow innovators to demonstrate feasibility, assess operational risks, and validate demand—while enabling the NCC to evaluate service quality and consumer impact before commercial launch.

What Applicants Must Pay

According to the framework document, the ₦250,000 administrative fee must be submitted alongside an application for General Authorisation. In addition, approved applicants will be required to pay applicable fees for:

Spectrum allocation, where required

Numbering resources, depending on the service being tested

These fees are separate from the ISA administrative charge.

Why the NCC Introduced the Framework

The NCC says the new framework modernises its licensing process by introducing flexibility into what has traditionally been a rigid regulatory system.

While unveiling the draft framework in July, Dr Aminu Maida, Executive Vice Chairman and CEO of the NCC, said the initiative is designed to accommodate emerging services that are not adequately covered under existing licensing categories.

“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.

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

How the Interim Service Authorisation Works

Under NCC supervision, new telcos granted an ISA can test their services in a live but controlled market environment. Key features include:

Testing with up to 10,000 customers

Operations limited to specific, pre-approved locations

Continuous oversight by the NCC

The authorisation is time-bound. According to the framework:

ISA is granted for an initial three months

It can be renewed once, for a maximum total duration of six months

Conditions for Participation

To qualify for the framework, applicants must meet several conditions:

The proposed service must be genuinely new or significantly different

The applicant must explain why existing regulations are restrictive

A clear plan must be provided to protect consumers and market integrity

Monthly reports must be submitted throughout the testing period

While the NCC may grant temporary regulatory exemptions during testing, consumer protection, data privacy, and security obligations remain fully in force.

Not a Guaranteed Path to a Full Licence

The NCC emphasised that the ISA is not an automatic pathway to a full telecom licence.

Instead, it serves as a transitional mechanism. Even after a successful test phase, the granting of a full licence will depend on:

Whether a formal licence category exists or is created

A comprehensive review by the Commission

What This Means for Nigeria’s Telecom Sector

For the NCC and the broader telecom industry, the framework is intended to make it easier for new and innovative operators to enter the market—without compromising service quality or consumer protection.

By allowing telcos to test before scaling, the regulator hopes to reduce failed launches, encourage experimentation in areas like Open RAN, spectrum sharing, and new connectivity models, and ensure that only viable services reach full commercial deployment.