The Nigerian Communications Commission (NCC) has unveiled new regulations governing Closed User Group (CUG) services within the telecommunications industry, set to be effective from November 1, 2023.
CUG is an auxiliary service offered by mobile operators, allowing subscribers to make calls and send SMS to fellow group members.
These regulations, detailed in a five-page document titled “Conditions For Offering Closed User Group (CUG) Services in the Nigerian Telecom Industry,” and signed by NCC’s Executive Vice Chairman, Prof. Umar Danbatta, encompass approximately 14 conditions and sub-conditions.
NCC has specified that CUG services can be extended to subscribers from various entities, including large corporate organizations, government entities, Not-For-Profit Organizations, registered residential estate associations, trade associations, and micro, small, and medium enterprises (MSMEs).
The number of Mobile Station International Subscriber Directory Numbers (MSISDNs) for CUG offerings varies depending on the category: MSME (200), Residents Estates Association (2,000), NGO (10,000), Government Agencies (20,000), Large Corporate Organizations (30,000), and Trade Associations (2,000).
The commission has set pricing guidelines for CUG services, establishing a minimum access fee of N400 and a maximum of N5,000 for both prepaid and postpaid services.
These services should exclusively cover voice calls and SMS, without bundling with data, Value-Added Services (VAS), or other supplementary services.
In terms of pricing, NCC has stipulated that all calls and SMS within a CUG network (on-net) should not be priced lower than N0.50/min for voice calls and N1.02 for SMS. Calls outside the CUG network (off-net) should not fall below the price floor of N6.40/min for voice services and N1.02 for SMS.
Additionally, the commission has placed a price cap of N50/min for voice and N4 per SMS for CUG services.
Operators are encouraged to directly manage their relationships with organizations using CUG services, although if a third party/agent is involved, they must be registered with the Commission and hold a Class License.
Documentation requirements for CUG registration differ based on the entity.
For large corporate organizations, NGOs, and MSMEs, necessary documents include Business Registration Document, Tax Identification Number (TIN), signed contract agreements, and National Identification Numbers (NIN) for representatives.
Trade Associations and Resident Estates Associations should provide similar documentation with the addition of a letter of request signed by two Trustees or Members of the Executive Committee (EXCO) on the association’s letterhead.
These conditions are set to be in effect from November 1, 2023, and will remain binding on licensees unless revised by the commission. The NCC retains the right to modify these conditions as needed.
