New Conditions for CUG operations Will take effect November 1

The Nigerian Communications Commission (NCC) has released new conditions for operators offering Closed User Group (CUG) services in the telecoms industry.

Expected to take effect from November 1, 2023, the CUG is a supplementary service provided by the mobile operators to subscriber’s who can make and receive calls from any member associated within the group. This service is applicable for SMS also.

According to NCC, in a five-page document, titled: “Conditions For Offering Closed User Group (CUG) Services in the Nigerian Telecom Industry,” signed by the Executive Vice Chairman, NCC, Prof. Umar Danbatta, the commission listed about 14 conditions with sub-conditions.

NCC said CUG services may be offered to subscribers by large corporate organisations, government; Not-For-Profit Organisations, duly registered residential estate associations, trade associations and micro small and medium enterprises (MSMEs).

The telecom regulator said a CUG offering must have a minimum of three Mobile Station International Subscriber Directory Number (MSISDNs), noting that maximum number of MSISDNs (Subscribers) permissible for the respective categories include MSME 200; Residents Estates Association, 2000; NGO, 10,000; Government Agencies, 20,000; Large Corporate Organisation, 30,000 and Trade Association, 2000.

NCC said the minimum access fee for both prepaid and postpaid CUG Services shall be N400 while the maximum shall be N5,000.The document showed that CUG services should be restricted to the provision of voice calls and SMS only. It said CUG rental/access fee must not be bundled with Data, VAS, or other ancillary services.

The Commission said all calls and SMS within a CUG (on net) shall not be below the rates of N0.50/min for voice services and N1.02 for SMS. It said all calls outside the CUG (off net) shall not be below the price floor of N6.40/min for voice services and N1.02 for SMS.

NCC said the price cap for voice shall be N50/Min for voice and N4 per SMS. The telecoms operators advised the operators to directly manage the relationship with the entities being offered CUG services by liaising directly with a designated staff of the organisation.

However, it said in the event that a third party/agent is engaged to manage any CUG relationship, the agent must be duly registered by the Commission and shall hold a Class License.

For documentation, NCC said some documents are mandatory and must be submitted before CUG registration. Specifically, for large corporate organization, NGO and MSME, the following documents must be submitted; Business Registration Document (Certificate of Incorporation, or Certificate of Registration, or Certificate of Incorporated Trustees); Provision of Tax Identification Number (TIN); Signed contract agreement between the organisation and the MNO; Proof of Identification of members within the given CUG; the NIN of two company representatives either; C-Level Director, CEO or Board Member/Trustees.

For Trade Associations and Resident Estates Associations, the following are essential; Business Registration Document (Certificate of Incorporation, or Certificate of Incorporated Trustees); Provision of Tax Identification Number (TIN); Signed contract agreement between the organization and the MNO; Proof of Identification of members within the given CUG; the NIN of two company representatives either; Board Member or Trustees; the request for the service shall be signed by two Trustees or Members of EXCO of the Association on the letter head of the Association; each subscriber shall provide a valid means of identification and a list of staff ID on a signed letter may suffice in place of ID card.

“The condition shall take effect from November1, 2023 and will remain valid and binding on licensees until further reviewed by the commission;

“The commission reserves the right to review, vary and modify the conditions from time to time as it may deem fit,” the document noted.