In a major development for Liberia's telecom industry, the Liberia Telecommunications Authority (LTA) has introduced transformative regulations that promise to reshape the sector, stimulate local entrepreneurship, and create a more competitive business environment.
The two regulations -- Numbering Regulations and the Regulations on Wholesale Access to Telecommunication Networks for the Provision of Value-Added Services (VAS) -- are the result of extensive research, review, and public consultation mandated by the LTA Act.
The introduction of these regulations marks a historic milestone under the leadership of the Acting Board of Commissioners, positioning Liberia's telecom market for unprecedented growth and innovation.
Acting Chairman of the Liberia Telecommunications Authority (LTA), Abdullah Kamara, who spoke on Monday, August 19, at the signing ceremony, said both regulations aim to correct market imbalances, foster fair competition, and empower Liberians to capitalize on the lucrative telecom sector.
According to him, the Numbering Regulations bring a structured approach to the allocation, assignment, and management of all telecommunication numbers, including Short Codes, across Liberia. "For years, Mobile Network Operators (MNOs) held exclusive control over these valuable resources, often charging exorbitant fees and creating an uneven playing field for businesses, particularly those entering the Mobile Money Market," he added.
Kamara noted that under the new regulations, Short Codes are now classified as a national resource, managed by the LTA. This ensures that access to these codes will be fair, transparent, and equally available to all applicants.
He maintained that the revised framework categorizes Short Codes into 3-digit to 6-digit numbers, including provisions for Toll-Free and Premium numbers. The new guidelines also eliminate perpetual rights to specific numbers, ensuring fair competition across the market.
Notably, the LTA acting chairman said, the cost structure has been revised to make it more affordable for businesses to enter the market. Application fees for Short Codes have been set at US$25, with an annual authorization fee of US$150. For the limited 3-digit Short Codes, a higher authorization fee of US$1,500 applies.
Complementing the Numbering Regulations is the VAS Regulation, which addresses wholesale access to telecom networks for small businesses and service providers. This regulation requires MNOs to provide fair, cost-based access to telecom infrastructure, allowing value-added service providers to effectively reach their customers. This regulatory framework is designed to foster innovation and expand the variety of telecom services available to consumers.
By leveling the playing field, the VAS Regulation ensures that smaller businesses have a chance to compete in the market, driving innovation and enhancing the overall telecom experience for Liberians.
To implement these sweeping changes, the LTA has announced a transitional period of two to three months, during which all active or reserved numbering resources will be transferred to the LTA's control. During this period, MNOs will be required to terminate their existing contracts with Short Code businesses, and the LTA will set new fees for numbering authorizations. This transitional phase is expected to disrupt the market, fostering greater transparency and competition.
The LTA will closely monitor and manage the transition to ensure that the regulations are effectively implemented and adhered to, addressing any challenges that arise and ensuring that the goals of fairness, competition, and innovation are met.
These landmark regulations are set to transform Liberia's telecom industry by promoting competition, transparency, and economic opportunity. For the first time, smaller entrepreneurs and local businesses will have access to critical telecom resources that were previously monopolized by larger operators. The regulations will stimulate entrepreneurship and innovation, allowing new businesses to thrive and offering consumers better services at more competitive prices.
Kamara disclosed that Liberia's telecom market generates almost US$200 million annually, with the majority of these profits flowing to foreign companies.
He emphasized the need for greater local participation, stating, "We are trying to create a space for Liberians now. His Excellency Joseph Nyuma Boakai and I have discussed this issue, and the Board fully supports it. We need to create Liberian millionaires, and the telecom sector is highly lucrative."
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Kamara urged young people, entrepreneurs, and business professionals to seize opportunities in the sector, which he described as a potential goldmine.
"There are immense opportunities in the telecom sector. These large Mobile Network Operators (MNOs) are not investing for nothing -- there's real money to be made. We encourage Liberians to explore this space, learn about the industry, and connect with those already involved for advice and insight," Kamara said.
He also likened the telecom sector to the petroleum industry, which Liberians have successfully penetrated and thrived. "I am jealous of the petroleum sector, where Liberians are doing very well," Kamara noted. "We want to replicate that success in the telecom industry and ensure that Liberians truly benefit."
