Having reaffirmed its commitment to licensing Mobile Virtual Network Operators (MVNOs) in Nigeria, the Nigerian Communications Commission (NCC) stated that it intends to have everything completed before the end of the year.
The NCC stated that the service is required in the nation to further spur innovation, even though it was learned that the commission is still awaiting final board ratification of the plan. The NCC made this statement at a forum in Lagos, organized by Business Remarks, with the theme: “Creating Awareness and Ensuring Sustainability of MVNOs in Nigeria’s 5G Ecosystem.”
A mobile virtual network operator (MVNO) is a company that offers wireless communications services but does not possess the wireless network infrastructure it uses to serve its clients.
Prof. Umar Danbatta, executive vice chairman of the NCC, stated in his keynote speech that the organization was dedicated to enhancing telecoms services, particularly with the introduction of the MVNO license and the rollout of 5G.
“The commission has introduced mobile virtual network operators (MVNOs) licences that will generate employment and also bridge the gap between the unserved and the underserved in society. It will also further engender competition and provide choices for telecommunications consumers,” he said.
Danbatta, who was represented by Alhaji Mohammed Babajika, Director of Licensing and Authorization at the NCC, emphasized that the MVNO license is a Five Tier classification, with different services required of players in each tier.
Each of these licensing types, in his opinion, has a lengthy 10-year validity period before renewal. He went on to say that the commission is now reorganizing all of its licenses due to advancements in technology throughout the world.
This covers the license conditions, the scope, the restrictions, the benchmark, as well as the price policies because some of these are already out of date.
Remember that the Nigerian telecoms regulator extended the deadline for submitting MVNO license applications in response to many requests from prospective MVNOs and MNOs due to the size of the grant requirements being the first of their kind in the market and to keep the host MNOs informed.
The four-week extension ended on October 11, 2022, and applications are already being evaluated, according to Babajika, who praised NCC for introducing MVNO to Nigeria’s telecoms market.
He added that the NCC board has already established a committee for the review and subsequent formulation of acceptable recommendations for the launch of the service as additional clarification.
The head of the NCC also suggested that talks with host mobile network carriers start right once after the license was granted, and that any agreements reached should be submitted to the commission.
“It is therefore imperative for industry stakeholders to collaborate on various efforts that will contribute positivity while continuing to ensure that operations are conducted within the respective telecommunication licenses, and that service challenges and demands are adequately delivered” Danbatta urged.
Bukola Olanrewaju, the convener and managing editor of Business Remarks, said in her opening remarks that MVNOs in developing markets like Africa may be guided in the same path with the right legislative environment and access to infrastructure.
According to her, the MVNO market is expected to rise to $112 billion by 2025 as a result of this growth, and the most recent evolutionary wave has seen MVNOs take up between 10% and 40% of the mobile market in developed economies.
“The introduction of Mobile Virtual Network Operators (MVNOs) is believed to add value for both operators and customers; for the operators by using their available excess capacity and for the customers by offering innovative and several niche value-added services that were not offered by Mobile Network Operators (MNOs),” she added.
