IPNEWS: In a landmark event today, the Acting Board of Commissioners signed the first-ever regulations under their tenure, marking a historic moment for Liberia’s telecommunications sector. These groundbreaking regulations are poised to significantly enhance opportunities for Liberian entrepreneurs, improve service quality, and boost government revenue.
The two major regulations, developed after extensive research, review, and public consultation as mandated by the LTA Act, are set to transform the telecom landscape. The first regulation, the Numbering Regulations, introduces a revised Numbering Plan that provides a comprehensive framework for the efficient allocation, assignment, utilization, and management of all telecommunication numbers, including Short Codes, nationwide.
Previously, Mobile Network Operators (MNOs) had full control over the assignment and pricing of Short Codes, often charging exorbitant fees. This lack of regulation created an unfair market, particularly for those entering the Mobile Money Market. The new Numbering Regulation changes this dynamic, making all Short Codes a national resource managed by the LTA. This ensures equal access for all applicants on a first-come, first-served basis, with clear guidelines and standards.
The revised Numbering Plan categorizes Short Codes into 3-digit to 6-digit codes, with specific provisions for Toll-Free, Premium, and other specially assigned numbers. The regulation eliminates exclusive perpetual rights to numbers, promoting effective competition and transparency. The application fee for Short Codes is set at USD 25, with an annual authorization fee of USD 150, except for the limited 3-digit Short Codes, which have a USD 1,500 authorization fee.
This new framework decentralizes control over this scarce national resource, fostering competition and opening up business opportunities for smaller entrepreneurs, especially Liberians. The second regulation, the Regulations on the Wholesale Access to Telecommunication Networks for the Provision of Value-Added Services (VAS), further supports this goal. The VAS Regulation mandates MNOs to provide access to Short Code businesses, ensuring fair market cost-based access for these businesses to reach their customers through MNOs, and promoting sustainable wholesale access to non-telecom services.
Over the next two to three months, the LTA has put in place a transitional arrangement requiring all active or reserved numbering resources to transition to the LTA. During this period, MNOs will transfer their control and terminate existing contracts with Short Code businesses. The LTA will then determine the numbering authorization fee. This transition period is aimed at disrupting the market to foster a more competitive and transparent environment.
The LTA will implement appropriate measures to manage and monitor the implementation of these regulations, ensuring their effectiveness and adherence.
The essence of these two distinct regulations is to open up opportunities for smaller businesses and encourage Liberian participation in the ownership, control, and management of the telecom industry. This shift is expected to stimulate innovation and entrepreneurship, providing a level playing field where new and existing businesses can thrive.
The Numbering Regulations, with their structured framework for the allocation and management of telecommunication numbers, will ensure that all players in the market have equal access to essential resources. This will prevent monopolistic practices and promote healthy competition, ultimately leading to better services and lower costs for consumers.
The VAS Regulation, on the other hand, mandates that MNOs provide access to Short Code businesses, ensuring that these smaller entities can reach their customers effectively. This regulation is crucial for the development of value-added services, which are expected to drive growth in the telecom sector. By facilitating fair market access, the VAS Regulation will help diversify the services available to consumers, enhancing their overall experience.
Over the next two to three months, the LTA has put in place a transitional arrangement requiring all active or reserved numbering resources to transition to the LTA. During this period, MNOs will transfer their control and terminate existing contracts with Short Code businesses. The LTA will then determine the numbering authorization fee. This transition period is aimed at disrupting the market to foster a more competitive and transparent environment.
The LTA will implement appropriate measures to manage and monitor the implementation of these regulations, ensuring their effectiveness and adherence. This proactive approach will help address any challenges that may arise during the transition and ensure that the regulations achieve their intended goals.
These new regulations are set to transform Liberia’s telecom sector by promoting fairness, transparency, and competition. They will open up new opportunities for smaller businesses, encourage local entrepreneurship, and ensure that all Liberians benefit from improved telecom services. The future of Liberia’s telecom industry looks brighter than ever, with these regulations laying the foundation for sustained growth and innovation.
