The Nigerian Communications Commission (NCC) has Unveiled revised Conditions for Operators providing Closed User Group (CUG) Services in the Telecommunications Sector.
These new Conditions are set to become effective from November 1, 2023.
CUG is an additional Service offered by Mobile Operators, allowing Subscribers to make and receive calls and send SMS messages within a specific group.
NCC, in a Five-page Document Titled “Conditions For Offering Closed User Group (CUG) Services in the Nigerian Telecom Industry,” signed by Prof. Umar Danbatta, the Executive Vice Chairman of NCC, detailed approximately 14 Conditions and Sub-conditions.
NCC stated that CUG Services may be extended to Subscribers within various Categories, Including large Corporate Organizations, Government entities, Not-for-profit Organizations, registered residential Estate associations, trade associations, and micro, small, and medium enterprises (MSMEs).
The Telecom regulator specified that a CUG offering must Comprise a Minimum of three Mobile Station International Subscriber Directory Numbers (MSISDNs), and the Maximum allowable number of Subscribers varies by category: MSMEs (200), Resident Estates Associations (2,000), NGOs (10,000), Government Agencies (20,000), Large Corporate Organizations (30,000), and Trade Associations (2,000).
The Document outlined pricing for CUG Services, setting a Minimum access fee of N400 for both Prepaid and Postpaid Services and a Maximum fee of N5,000.
It clarified that CUG Services should exclusively Cover Voice calls and SMS, without Bundling with Data, Value-added Services, or other Ancillary offerings.
Furthermore, NCC stipulated that all calls and SMS within a CUG (on-net) should not be Priced lower than N0.50/min for Voice Services and N1.02 for SMS.
Calls outside the CUG (off-net) should not fall below the price floor of N6.40/min for Voice Services and N1.02 for SMS.
The price cap for Voice was set at N50/min, with SMS Costing N4 per message.
NCC advised Operators to directly Manage Relationships with Organizations receiving CUG Services through designated Personnel.
If a third Party/Agent handles the CUG Relationship, they must be duly Registered by the Commission and possess a Class License.
Mandatory documentation requirements were Outlined by NCC for different Categories.
For large Corporate Organizations, NGOs, and MSMEs, mandatory Documents include Business registration documentation (Certificate of Incorporation, Certificate of Registration, or Certificate of Incorporated Trustees), provision of Tax Identification Number (TIN), Signed Contract agreement between the Organization and the Mobile Network Operator (MNO), proof of identification for CUG members, and the National Identification Number (NIN) of two Company Representatives.
Trade Associations and Resident Estates Associations have similar Mandatory document requirements, Including Business registration documentation, provision of TIN, Signed contract agreement, proof of Identification of members, and NIN for Company Representatives.
The request for the Service should be Signed by two Trustees or Members of EXCO of the Association on the association’s letterhead, and each Subscriber should provide a Valid means of Identification.
The Document concludes by noting that the new Conditions will take effect from November 1, 2023, and will remain Valid and Binding on Licensees until further review by the Commission.
