After 20 Years, New Licensing Fee for Commercial Telecoms Services Coming, says NCC

Nigerian Communications Commission is the government regulator for telecoms sector in Nigeria.

Newswatch Nigeria can report that Government is set to do away with investment licensing structure currently holding as policy for Commercial Telecoms Services in Nigeria.

And, efforts have been put into motion for a comprehensive review of the existing licensing structure in the sector, which will invariably effect a new structure that will eventually replace the existing licensing scheme. .

The Nigerian telecommunications industry had said this licensing review is expedient in demonstration of its responsiveness to global trends and the dynamics in the Information and Communications Technology ecosystem.

A media statement from the commission further explained the Executive Vice Chairman and Chief Executive Officer of NCC, Prof. Umar Garba Danbatta has inaugurated an in-house Standing Committee to carry out task for the review of the existing license structure in the sector.

That the sector has it share of impart consequent range of technological introduction, advancements and improvement solutions, convergence of innovation and network service colocations characterized by global telecoms space features, may not be unconnected for a review of government’s policy for the sector.

Furthermore, According to Danbatta in the media statement, the current license structure is almost 20 years old, hence the need for an urgent review of the existing license pattern to reflect new licensing trends in line with international standards while providing opportunities for improved revenue for government.

“Therefore, it is evidently clear that this Standing Committee, drawn up from competent hands in various departments of the Commission, is perfectly suited and capable of addressing the enormous task of reviewing the existing license structure of  telecom licensees in Nigeria,” he said.

While noting that the work of the Standing Committee will be carried out in phases, Danbatta said effective delivery of the Committee’s task will help the Commission to institute a process, which will culminate in the review of the terms and conditions of the various license categories.

He said the categories will include licensing fee, as well as identification of the limitations of the various license categories, with a view to clearly determining licenses that should be phased out or amended.

Specifically, Danbatta outlined Management’s seven-point deliverables from the Committee to include a comprehensive review/report on existing licenses; report and recommendations on consultative fora; and report on recommended new license undertakings.

Others include a report on recommended amendment to license fees and durations; a report on benchmarking of license with similar jurisdictions, a report on the impact of certain licenses on other license holders. The Committee is also expected to recommend solutions as well as the develop updated regulatory framework for new and amended licenses as the case may be; and a final report on the project with all recommendations.

Also speaking during the inauguration of the Committee, the Director, Licensing and Authorisation, NCC and Chairman of the Committee, Mohammad Babajika, assured the Commission’s Management of the Committee’s resolve to deliver on the terms of their assignment.

At the end of the Committee’s assignment, and following due consultations with industry stakeholders, the Commission envisages a new draft framework for new and amended licenses.