" ITREALMS: Open Internet: NCC’s balancing Act for telcos and OTTs by Remmy Nweke - Telecoms Clinic@ITREALMS

Monday, December 01, 2025

Open Internet: NCC’s balancing Act for telcos and OTTs by Remmy Nweke - Telecoms Clinic@ITREALMS

Telecoms Clinic@ITREALMS ... making leadership SENSE with digital news!

As WhatsApp, Zoom, and Netflix among others disrupt communication, Nigerian operators sought control. REMMY NWEKE, in this edition of Telecoms Clinic@ITREALMS, writes how the NCC defended innovation, safeguarding digital freedom and powering Nigeria’s Over-The-Top (OTT) revolution.
Introduction:
When Over-The-Top (OTT) communication platforms began to dominate Nigeria’s telecom landscape between 2015 and 2016, a quiet battle erupted in policy circles. Apps such as WhatsApp, Zoom, Telegram, and Skype were changing how Nigerians communicated, offering instant messaging, video calls, and file sharing at virtually no extra cost beyond mobile data.
Open Internet: NCC’s balancing Act for telcos and OTTs by Remmy Nweke - Telecoms Clinic@ITREALMS
To mobile network operators (MNOs), this disruption was alarming. They had spent billions of naira building infrastructure, paying regulatory fees, and expanding coverage. Yet, consumers were now bypassing traditional voice and Short Messaging Service (SMS) offerings through Internet-based alternatives that rode on the very networks MNOs built.

The operators argued that OTTs were “riding for free” using network infrastructure without contributing to regulatory compliance costs or Universal Service Fund obligations. They lobbied for what they called a “level playing field,” proposing new taxes, licensing conditions, or restrictions on free voice and messaging apps.

For the Nigerian Communications Commission (NCC), this debate went far beyond economics. It was a question of the nation’s digital future. Would Nigeria clamp down on innovation to protect legacy revenue streams? Or would it open the floodgates of digital transformation and let market evolution take its course?

 
NCC’s Policy Stance: Innovation first, restriction later:
Between 2016 and 2023, the NCC found itself at the centre of this delicate balance. It faced strong pressure from telecom operators, revenue agencies, and even some policymakers who feared a collapse in telecom tax contributions. But the Commission chose a measured, forward-looking path.

Rather than rushing to impose taxes or restrictions on OTTs, the NCC publicly defended the principle of open Internet access. It argued that consumers already pay levies through data services, meaning any OTT tax would amount to double taxation. Moreover, OTT services were not replacements for telecom infrastructure but Internet-based Value-Added Services (VAS); the very innovation Nigeria’s ICT ecosystem needed.

In a landmark 2017 policy clarification, the then Executive Vice Chairman (EVC) of the NCC, Prof. Umar Garba Danbatta, declared: “The Nigerian consumer must have the freedom to choose communication platforms. Innovation should be nurtured, not stifled.”

That statement became the cornerstone of Nigeria’s digital innovation policy. It sent a clear message to investors and developers that the country would remain open to new technologies and global connectivity tools.
Open Internet: NCC’s balancing Act for telcos and OTTs by Remmy Nweke - Telecoms Clinic@ITREALMS
 
NCC’s protective role for broader digital economy:
By shielding OTTs from premature or punitive regulation, the NCC did more than protect messaging apps, it protected the country’s digital transformation pipeline.

The ripple effects were immediate and profound. Small businesses began using WhatsApp to advertise, take orders, and communicate with customers. Startups used Zoom for investor pitches and remote collaboration. Teachers and students found lifelines in Google Meet and Telegram study groups during the COVID-19 lockdowns.

Nigeria’s digital economy began to take shape not through government programmes alone, but through everyday adoption of global OTT tools. This openness helped spark growth in fintech, edtech, media streaming, and telemedicine, all of which depend on unhindered data access. Consumers, meanwhile, were empowered with affordable options; video calls across borders, e-learning from home, and instant mobile payments.

The NCC’s decision essentially ensured that innovation in Nigeria remained bottom-up, driven by creativity and consumer needs, rather than restricted by corporate lobbying.
Balancing Operator Interests

Yet, the Commission never dismissed the operators’ grievances. It recognised that network sustainability was crucial to the digital economy. To maintain balance, the NCC introduced policies to help MNOs adapt to the shifting terrain.

It initiated consultations on fair cost recovery, infrastructure sharing, and spectrum management to reduce duplication of investment and lower operational costs. It also promoted data centre expansion and local content hosting to ease international bandwidth strain and support indigenous app development.

The NCC encouraged operators to pivot from traditional voice-based revenue models to data monetisation, content partnerships, and digital service bundling. This adaptive strategy reframed competition as collaboration, telecoms as the backbone, OTTs as the drivers of demand.

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Over time, this coexistence began to yield results. Operators launched their own OTT-like services, integrated WhatsApp business APIs (Application Programming Interfaces) which sets the rules and protocols that allow different software applications to communicate, share data, and function together, and introduced flexible data packages that benefited consumers. The ecosystem began to stabilise, not through regulation, but through adaptation.

Defending users, not just networks:
Perhaps the most underappreciated part of the NCC’s legacy is its consistent defence of consumers in the digital era. As Internet-based platforms expanded, so did the risks of spam, fraud, and data misuse. The Commission responded with targeted initiatives that protected users’ right to privacy and safe communication.

The introduction of the Do-Not-Disturb (DND) code allowed subscribers to block unwanted marketing messages. Anti-spam regulations curbed the menace of robocalls and deceptive promotions. More recently, the NCC partnered with the National Data Protection Commission (NDPC) and the Federal Competition and Consumer Protection Commission (FCCPC) to tackle emerging data privacy abuses — including those by rogue loan apps and digital lenders.

This collaborative approach recognises that modern telecom regulation extends beyond voice and SMS. It now encompasses data ethics, privacy protection, and digital rights. The NCC’s evolution from infrastructure regulator to digital-ecosystem defender has been essential for Nigeria’s credibility in the global ICT community.
 
Current outlook (2024–2025):
Today, as Nigeria expands its 5G networks and refines its Digital Services Policy Framework, the NCC continues to walk the tightrope between innovation and regulation.

It remains a vocal advocate of net neutrality; the principle that Internet service providers must treat all online content equally. It promotes cross-border interoperability, allowing Nigerian users and businesses to connect seamlessly with international platforms.

The Commission also supports collaborative regulation by engaging OTT providers directly rather than imposing top-down control. It is actively working with platforms to align on issues of data localisation, consumer protection, and fair traffic management, without stifling service access.

While some operators continue to call for “OTT levies” or a new form of digital service tax, the NCC’s current leadership under Dr. Aminu Maida has reaffirmed the Commission’s pro-innovation stance. At the 2024 ICT Growth Forum, Maida underscored this direction, asserting “Innovation cannot flourish under fear. The future of telecoms is data, not restrictions.”

That sentiment captures the Commission’s understanding that Nigeria’s telecoms growth now depends on enabling, not constraining, Internet-based communication.

Quiet defence of the open Internet:
Looking back over the past decade, the NCC’s approach to OTT platforms reflects an important philosophy: technology should not be punished for succeeding.

By refusing to impose premature regulation, the Commission allowed Nigeria’s digital economy to grow organically. This restraint created room for new ecosystems, from mobile payments to digital media and allowed Nigerian startups to compete globally.

The result is a digital sector that contributes more than 18 percent to national GDP, supports millions of jobs, and powers innovation across sectors.

Yet the debate is far from over. Telecom operators still seek revenue balance as voice declines and data dominates. Global tech giants continue to shape local consumption patterns. And regulators must constantly update policies to reflect new realities such as AI integration, cybersecurity, and digital taxation.

Through all of this, the NCC’s guiding principles have remained steady: protect the consumer, enable fair competition, and keep Nigeria connected to global innovation.

As the line between telecom and technology continues to blur, the NCC’s defense of OTT platforms will be remembered not as an act of passivity, but as strategic patience; a deliberate decision to let innovation breathe before regulation sets in.

That patience has paid off. It is why Nigerians today can work remotely, study online, run businesses through WhatsApp, and connect globally without gatekeeping.

In the grand narrative of Nigeria’s digital journey, the NCC has not just been a regulator. It has been a guardian of access, ensuring that the power of communication; once confined to phone lines and towers now lives freely in the palms of millions.

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