By Clifford Agugoesi, Editor-in-Chief
If you are one of those desirous of playing in the Nigerian telecommunications space but are scared stiff regarding the perceived huge capital outlay involved, now is the time to heave a sigh of relief as one of the regulatory interventions by the sector regulator, the Nigerian Communications Commission(NCC), appears to be skewed towards removing your fears and democratizing as it were, the playing field. Cyber Era NG can authoritatively report this is one of the selling points of the soon-to-be introduced Interrogating The Value Proposition Of Application-To-Person Service(A2P) services.
The key licensing features of the A2P service include:
- License Fee: N10,000,000 Naira.
- Tenure: 5 years (renewable).
- Market: Open to competition with provisions for fair practices.
This piece of cheery good news emerged Friday as the Commission rallied industry stakeholders to a virtual forum to discuss the licensing framework on A2P. In her presentation that provided an overview of the A2P Licensing Framework, an Assistant Director at the Licensing and Authorisation Department of the Commission, Mrs. Truddy Tony-Awusaku, threw light on what A2P was all about.
What is Application-to-Person (A2P) Messaging?
Said Mrs. Awusaku: “Application-to-Person (A2P) messaging is a communication format in the telecommunications sector used to send Short Message Services (SMS) or sending notifications from an application directly to a recipient’s mobile phone.”
According to Awusaku, A2P is “initiated through the Internet but recipients receive messages via Cellular Connection.”
“ In other words, A2P Enables businesses to send SMS directly to recipients via mobile networks,” she said.
As per the NCC Assistant Director, common uses of A2P included marketing, notifications, alerts, and transactional messages.
Current Status Of International A2P Messaging In Nigeria
- Lack of Regulation: No unified oversight.
- Revenue Leakage: Payments often bypass local systems, not taxed, reducing economic benefits.
- Security Risks: Increased spam, fraud, and illegal activities.
- Market Disparities: Unregulated termination rates lead to inconsistencies.
Justification For Licencing
On why regulatory oversight is essential, she gave the following points:
*Standardized Tariffs and Fair competition.
*Enhanced security against Spam and Fraud.
*Fraud Prevention and Unwanted Traffic
*Increased local revenue through Taxation and Levies.
*Comprehensive Market Oversight.
Licensing Objectives
Key Goals:
- Centralize International A2P message Routing
- Mandate compliance with a unified platform.
- Protect user data with stringent security protocols.
- Foster a competitive and transparent market.
Licence Overview
Scope of Licence:
-Operate a centralized International A2P platform.
-Route A2P messages securely.
-Offer transactional and notification services.
– Implement Subscriber opt in/out mechanisms
Limitations
*Prohibited from providing Services not included in the Scope
*No provision of non-licensed telecom services.
*Prohibition against unauthorized activities.
*Does not qualify for International Signaling Point Code(ISPC) and National Numbering Plan
Eligibility Criteria
-Registered Corporate Body in Nigeria
-Have a Contract Agreement with a Host Network Operator or National Carrier
-Proof of Financial Capabilities for CAPEX/OPEX
-Any other as may be Required
Technical And Security Requirements
- Technical Needs
- Capacity to Interact with local MNOs.
- Capacity to route A2P Messages through Centralized SMS firewall.
- Systems for Fraud detection, Data Protection & Encryption.
- Security Measures:
- Encryption protocols.
- Data protection compliance.
- Spam and fraud filtering.
Interconnection/Integration
*A2P Provider must interconnect with licensees who provide voice and SMS services pursuant to an Interconnect Agreement duly approved and filed by the Commission.
*All local MNOs and international A2P messaging service providers must integrate their systems with the centralized A2P platform within a specified period
Regulatory Compliance
-Adherence to all relevant NCC Regulations
-Compliance to Nigerian Data Protection Regulation
-Submission of periodic reports (Traffic data, Revenue, and Service quality metrics).
-Compliance with standardized tariffs and licensing conditions.
Breach Of Licence Conditions
- Sanctions, including fines, suspension, or revocation of the licence.
- Non-compliance with Tariff regulations, failure to meet security standards, or tax evasion will attract penalties as stipulated by the NCC.
Benefits Of Licence
*Improved Security: Safeguard against spam and fraud.
*Revenue Retention: Local economic growth through taxation.
*Market Oversight: Transparency in operations and tariffs.
*Enhanced User Trust: Protection of subscriber data.
Conclusion
Awusaku concluded by saying that the Commission was working towards a secure and regulated ecosystem, emphasizing that the International A2P Messaging Licence ensured fair, secure, and efficient communication, fostered economic growth while protecting consumers and businesses as well as encouraged a competitive and transparent telecommunications market.
