In a bid to ensure standardised processing and monitoring, and to further ensure that all brands and Over-The-Top (OTT) service providers route their A2P SMS traffic through a single gateway, the nation’s regulatory body, the Nigerian Communications Commission (NCC) has set out a process for licensing for the Provision of International Application-to-Person (A2P) Messaging Aggregator Services.
In a statement issues by the Commission, calling for applications from interested service providers, the NCC stated: “In view of the reasons outlined above, and pursuant to its powers under Section 32 of the Nigerian Communications Act 2003 (NCA), the Commission is introducing the International A2P Messaging Aggregator License as a licensable undertaking. This initiative aims to enhance security, ensure tax compliance, address the disparity in termination rates and prevent revenue leakages within the SMS ecosystem.”
The NCC, in its document, explained Application-to-Person (A2P) messaging as a communication format in the telecommunications sector used to send for Short Message Services (SMS) or sending notifications from an application directly to a recipient’s mobile phone.
This form of messaging is predominantly used by businesses and organisations to deliver bulk promotional or transactional messages, such as marketing campaigns, appointment reminders, announcements, product advertisements, and order status updates. A2P messaging serves as a critical communication channel for citizens, businesses and governmental Institutions alike.
Proffering reasons for the licensing, NCC noted that the International A2P SMS service segment is not fully regulated, unlike the voice service segment.
Other reasons the Commission pointed out include:
- That local Mobile Network Operators (MNOs) independently monetise international A2P SMS traffic, often using various technologies that may not be secure or known to the regulator.
- That individual operators set their tariffs, leading to distortions and inconsistencies in termination rates.
- That revenue from International A2P traffic is currently collected by entities outside Nigeria. Payments are made in foreign currencies, which do not flow into the country nor are the companies taxed.
- That there is no specific regulation on A2P SMS, leading to a lack of visibility in the SMS market, potential formation of cartels, and reduced competition.
Applying service providers, are required, among others, to provide information on:
- Proposed Community Service Obligation;
- Amount Budgeted for the project;
- Evidence of Funding;
- Proposed Code of Practice/compensation for loss of service
Technical Requirements for applicants include:
- Management Capacity: Provide full particulars of the company’s experience and expertise, including those of its Partners, Suppliers, Contractors, and Providers of Technical support.
- Technical layout/systems description; Provide details of the type of technology the Company intends to deploy, a descriptive drawing of the technical architecture of the proposed service and End-to-End network architecture.
- Provide evidence of the capacity to integrate with local MNOs and operate within a secure network environment.
- Clearance from the National Data Protection Commission – to ensure fraud detection, data protection, and security monitoring, including firewalls and encryption protocols to protect against unauthorised access and spam.
- Evidence of the capability of routing international A2P SMS traffic through a centralised SMS firewall or any other technology mandated by the NCC.
According to the NCC, the License, which has an initial tenure of five (5) years, but renewable for a further period of five (5) years upon its expiration, will cost applicants Ten Million Naira (N10, 000,000) only. Applicants are expected to pay 5% of the License fee as non-refundable administrative charge on submission of the application.
The Licensee is however prohibited from providing or operating any other telecommunications services which is not expressly included within the scope of this license or for which a separate license has not been issued by the Commission. This clause means that mobile network operators (MNOs) are excluded from operating in the international A2P SMS service.
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