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Why A2P, Messaging Licensing Is Important –NCC

Recently, the Executive Vice Chairman (EVC)/CEO, Nigerian Communications Commission, Dr. Aminu Maida at the Virtual Stakeholders’ Forum on the Draft A2P Licensing Framework held on December 20th, 2024, spoke extensively about the importance of the Licensing exercise.

In his speech, the Ag. Head, Legal & Regulatory Services of NCC, Chizua Whyte, welcomed the stakeholders to the Forum on Application-to-Person, or A2P, Messaging and expressed gratitude to the participants for coming together to deliberate on a critical segment of the telecommunications ecosystem that affects businesses, consumers, and service providers alike.

He said, A2P messaging plays a vital role in today’s digital world. It has become the go-to platform for businesses to send transactional, promotional, or service-related notifications directly to consumers. From bank alerts and healthcare reminders to promotional campaigns and government updates, A2P messaging drives efficiency, enhances communication, and supports our socio-economic development.

He said at the Nigerian Communications Commission,  ‘Our strategic focus is centred on three key stakeholders: the government, consumers, and the industry—our licensees. Each of these stakeholders plays a vital role in the success of the A2P messaging platform.’

For the government, A2P messaging is a powerful tool for communication with citizens, enabling the efficient delivery of public services and information.

For consumers, it guarantees timely, secure, and reliable access to essential updates and services.

For the industry, it creates opportunities for businesses and service providers to innovate, drive competition, and achieve sustainable growth.

“Despite its undeniable value, the international A2P messaging space in Nigeria faces significant challenges, including consumer protectionfraud prevention, and ensuring industry fairness, he stated.

These gaps, he stated have led to issues such as fraud, spam, data privacy concerns, and an unequal distribution of value across the ecosystem. Such challenges not only affect businesses and consumers but also pose a threat to the sustainable growth and potential of this crucial communication tool.

He explained that the forum marks a pivotal step toward addressing these challenges. “Today we will be presenting the proposed regulatory framework for A2P messaging to you, our valued stakeholders, for deliberation. This framework represents our commitment to fostering innovation while ensuring that all players in the value chain operate in a fair, transparent, and secure environment.”

“At the NCC, we firmly believe that effective regulation stems from inclusivity and collaboration. This forum is an opportunity for all of us—operators, aggregators, businesses, service providers, and consumers—to engage in meaningful discussions. We want to hear from you—your perspectives, experiences, and recommendations—so that together, we can refine this framework to ensure it meets the needs of all of us.”

“Our goal is to create a sustainable and thriving A2P messaging ecosystem that protects consumers, promotes fair competition, and unlocks new growth opportunities. To achieve this, your active participation today is essential. I urge you to engage constructively, provide feedback, and contribute ideas that will help shape the future of A2P messaging in Nigeria.”

He assured the participants that the Nigerian Communications Commission remains committed to providing a regulatory environment that supports innovation, protects stakeholders, and ensures that our telecommunications sector continues to thrive.

Once again, I thank you for your presence and dedication. I look forward to robust deliberations and the collaborative solutions that will emerge from today’s discussions.

Other salient highlights from the Virtual Event

 The Commission at the Forum presented the various feedback received as inputs into the A2P Licensing Framework being proposed by the Commission and gave NCC’s responses to each of the observations and recommendations made by the licensees.

    Aside the Virtual Stakeholders’ Forum, which the Commission says it is just the beginning of a process, the NCC says it will continue to engage internal and external stakeholders ahead of the Final Draft of the A2P Messaging Services Licensing Framework in line with its participatory rule-making process.

One of the highlights of the event was a presentation by an Assistant Director at the Licensing and Authorisation Department of the NCC, Mrs. Truddy Tony-Awusaku, which provides an Overview of Framework for International A2P Messaging

The presentation took the participants through what Application-to-Person (A2P) Messaging is.

According to the presentation Application-to-Person (A2P) messaging is a communication format in the telecommunications sector used to send Short Message Services (SMS) or send notifications from an application directly to a recipient’s mobile phone. It 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, and it is commonly used for marketing, notifications, alerts, and transactional messages.

Speaking on the current status of A2P in Nigeria, the NCC states that there is a Lack of regulation and no unified oversight. Others include:

 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.

While speaking on the justification for the licensing, the NNC boss stated that regulatory oversight is essential in order to have standardized Tariffs and Fair competition, enhanced security against Spam and Fraud, Fraud Prevention and Unwanted Traffic. Others include increased local revenue through Taxation and Levies and comprehensive Market Oversight.

Explaining the objectives of the licensing, the NCC stated that the key goals are:

a.  Centralize International A2P message Routing

b. Mandate compliance with a unified platform.

c. Protect user data with stringent security protocols.

d.  Foster a competitive and transparent market.

 

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