Telecom Stakeholders, Including MTN, Recommend Tweaks to NCC’s General Authorisation Framework

Stakeholders in Nigeria’s telecommunications sector — including MTN Nigeria Communications Plc — have called for a review and refinement of the draft General Authorisation Framework (GAF) proposed by the Nigerian Communications Commission (NCC).

The NCC presented the draft on July 17, 2025, during a stakeholders’ forum held in Abuja. While the framework was commended for its uniqueness in both design and implementation, participants noted critical differences between the Nigerian model and similar frameworks in countries such as the United Kingdom and Germany.

The Innovation and Communications Advisory Forum (ICAF) highlighted that the proposed authorisation under GAF is temporary. It is recommended that participation should be limited to defined consumer groups, who would experience the initiative for a minimum of six months without obligations before any full-scale rollout.

ICAF further proposed a revision of Clause 18, which currently calls for a “comfort letter” on indemnification. Instead, it recommended a formal contractual indemnity agreement to ensure:

• Clear accountability, Enforceable protection for consumers and third parties, and
• Alignment with global best practices.

To enhance the framework’s effectiveness, ICAF also suggested:

• A clear distinction between communication platforms and services hosted on those platforms.
• Inclusion of a technical scope alongside the administrative provisions to capture sector innovations more accurately.

On Post-Test Licensing Rights, the ICAF raised concerns about the lack of provisions for redress when a license is denied after the general authorisation period. It is recommended that the final framework incorporate:

• Clearly stated grounds for license denial; The right for applicants to respond; A 30-day window for appeals or submission of additional documents; Options for regulatory or judicial review.

It also advised that these procedural protections be reflected in Clause 14, which addresses suspension and termination of general authorisations.

MTN Nigeria questioned whether the draft framework aims to regulate all innovative technologies or only those under the Commission’s legal scope, as defined by Section 3(1) of the Nigerian Communications Act 2003.

The company emphasized that the framework should only govern innovative communication technologies and services to avoid jurisdictional overreach.

MTN also called attention to the distinct purposes of:

• Proof of Concept (PoC) – for testing new technologies,
• Regulatory Sandbox – for controlled trials of services not yet in the market, and
• Innovation Service Authorisation (ISA) – which temporarily allows telecom services to operate in active markets pending full licensing.

MTN presented the following recommendations:

• Restrict the scope of GAF to PoC and Regulatory Sandbox initiatives only.
• Create a separate temporary licensing regime for services that do not yet fall under formal license categories.

On Monitoring and Reporting, MTN proposed the following regarding test-phase reporting:

• Only a final report should be submitted within 30 days of test completion.
• Revenue details should not be mandatory, as tests may not generate income.
• If required, revenue reporting should be qualified based on service rollout and applicability.

On Payment for Spectrum and Resources, MTN objected to full charges for spectrum or numbering resources used during short-term PoCs or Sandbox trials, arguing it could deter innovation.

It recommends that:

• Applicants should pay a subsidised portion of resource fees.
• Payments should only be made after successful testing, and only for resources actually used.

On authorisation duration, MTN advised that applicants be allowed to propose their own testing timelines, subject to NCC approval. It recommended:

• A maximum duration of 24 months, or
• A flexible range between 12 and 24 months.

While on disclosure of agreements, MTN opposed mandatory disclosure of all agreements with other licensees.

It recommendations:

• Removal of the requirement entirely, or
• Limit disclosures to those already required under existing NCC regulations.

On the Commencement Timeline, MTN suggested giving authorisation holders the flexibility to determine their start dates based on internal plans.

The company in its recommendation, said applicants should specify when testing will commence as part of their application.

MTN also raised concerns about vague checklist requirements referencing “regulatory approvals”, while recommending that the framework should clearly define which regulatory bodies are involved and the specific approvals required.

In response to these recommendations, the Nigerian Communications Commission (NCC) assured stakeholders that it would incorporate their feedback — especially from ICAF and MTN — in the final version of the framework.

The NCC reiterated that the General Authorisation Framework is designed to introduce a more flexible licensing regime structured around three key instruments:

1. Proof-of-Concept (PoC) Pilots – enabling innovators to validate novel ideas in real-world environments.
2. Regulatory Sandbox – supporting controlled trials (e.g., Open RAN, dynamic spectrum sharing) under NCC oversight.
3. Interim Service Authorisation (ISA) – granting temporary authorisation for services that don’t yet fit into existing license categories, allowing lawful operation while formal licensing is being developed.