There are plans by the Nigerian Communications Commission, (NCC) to drop the current framework for the use of the Application-to-Person (A2P) messaging communication.
The (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.
A2P is initiated through the internet, but the text messages are transmitted over mobile networks reaching recipients via their cellular connection. 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.
According a document: DRAFT LICENCE FRAMEWORK FOR INTERNATIONAL APPLICATION TO PERSON (A2P) MESSAGING IN NIGERIA sighted by TechnologyMirror informing the stakeholders of a planned engagement with them in a stakeholders’ in a virtual meeting, the NCC said that the International A2P SMS service segment is not fully regulated, unlike the voice service segment.
In a notice inviting the stakeholders to the meeting, the Director of Public Affairs of the NCC, Mr Reuben Muoka assured that the Commission is committed to ensuring compliance with the provisions of the Nigerian Communications Act, saying that stakeholders should submit comments and contributions on the exposed A2P Framework on or before Thursday December 19th 2024.
Giving reasons for wanting to rejig the current framework, the NCC noted that Local Mobile Network Operators (MNOs) independently monetize international A2P SMS traffic, often using various technologies that may not be secure or
known to the regulator.
It said further that individual operators set their tariffs, leading to distortions and inconsistencies in
termination rates adding that revenue from International A2P traffic is currently collected by entities outside
Nigeria, and that payments are made in foreign currencies, which do not flow into the country nor are the Companies taxed.
The NCC disclosed that presently, 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 noting that the International SMS Service Ecosystem in Nigeria has not been fully brought under regulatory control. It has been observed that the excessive use of the Short Message Service has led to fraud, spam and illegal activities.
The expressed concern that if the present framework was not rejig, the problem is likely to worsen as mobile connectivity and digital services continue to grow exponentially stating, “to address these challenges, implementing a Centralized SMS Firewall is necessary. This system will regulate SMS exchanges, safeguard the integrity of short message communications and mitigate emerging threats. It will enable the Commission to maintain full regulatory oversight of the SMS service ecosystem, ensuring security and fraud control.”
Outlining what the Nigerian telecoms industry stands to gain from the rejigging, the NCC said that through the creation of a single platform, the Commission will have better control over the International A2P SMS traffic, ensuring compliance with regulations and improving market oversight.
The Commission said the new framework would offer it the ability to levy international A2P SMS traffic appropriately, ensuring revenues are collected within the country adding that revenues generated from international A2P SMS
traffic will stay within Nigeria, contributing to the local economy and being subject to local taxation.
When fully operational the Commission said that there will be standardized tariffs and increased transparency will promote fair competition among operators, preventing monopolistic practices stressing that the framework would ensure the removal of fraud and unwanted traffic by enhancing security measures to detect and remove fraudulent and unwanted SMS traffic.
More significantly, the new framework is provide the Commission with complete visibility and control over the International SMS market segment to regulate it effectively and also secure the SMS Space by implementing security protocols to protect the SMS ecosystem while at the same time creating a new revenue stream for the government through Taxation and Levies
on International A2P SMS traffic.