The Nigerian Communications Commission (NCC) has approved an administrative fee of N250,000 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 is specified in the General Authorisation Framework (GAF) released by the commission as part of its regulatory initiatives to open the industry for qualified applicants and encourage innovation in the rapidly growing telecommunications sector.
In addition, the latest framework is aimed at supporting startups and technology-driven telecom firms, as well as larger operators introducing new services.
According to the commission, under the framework, eligible applicants can test new ideas in a controlled, real-world environment without first obtaining a full telecom licence, thereby allowing innovators to demonstrate feasibility, assess operational risks, and validate demand while also enabling the commission to evaluate service quality and consumer impact before commercial launch.
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Based on the NCC stipulated requirements on the framework, the N250,000 administrative fee must be submitted alongside an application for General Authorisation, and approved applicants will be required to pay applicable fees for Spectrum allocation, where required; Numbering resources, depending on the service being tested; and these fees are separate from the ISA administrative charge.
The NCC stated that the new framework modernised its licensing process by introducing flexibility into what has traditionally been a rigid regulatory system.
Speaking during the unveiling the draft framework, Executive Vice Chairman/CEO of the NCC, Dr. Aminu Maida, said the initiative was designed to accommodate emerging services that are not adequately covered under existing licensing categories.
He explained: “We are now at a turning point where the nature of innovation demands a regulatory paradigm that is not only responsive but enabling.”
Maida clarified that the framework would also encourage experimentation while safeguarding consumer rights and public interest.
Under NCC supervision, new telcos granted an ISA can test their services in a live but controlled market environment. The key features of the test are the testing must be with up to 10,000 customers, and operations limited to specific, pre-approved locations, and there must be continuous oversight by the commission
The authorisation is time-bound as the ISA is granted for an initial three month, and it can be renewed once, for a maximum total duration of six months
To qualify for the framework, the proposed service must be genuinely new or significantly different, the applicant must explain why existing regulations are restrictive, provide a clear plan to protect consumers and market integrity, and submit monthly reports 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, it pointed out that the ISA was 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, and a comprehensive review by the commission.
Industry experts believe that the new framework introduced by the NCC has the potential of making it easier for new and innovative operators to enter the market and by making it mandatory for telcos to test before scaling, improve service quality and consumer protection in the telecoms industry..
They further projected that by allowing the test before scaling by operators, the commission will prevent failed launches, encourage experimentation in areas like Open RAN, spectrum sharing, and new connectivity models, and ensure that only viable services are licensed for full commercial deployment.
