The Nigerian Communications Commission (NCC) granted licences to 25 companies to provide Mobile Virtual Network Operators (MVNO) services.
The licensing came after almost two years the regulator first spoke about the plan to license MVNOs to further deepen state of telephony services.
An MVNO is a company that does not own a mobile spectrum licence, but sells mobile services under its brand name using the network of a licensed mobile operator.
The operator rides on the infrastructure of a fully licensed mobile telecommunication service provider or mobile network operators (MNOs). It thus means that these licencees will provide the same services as MTN, Globacom, Airtel, and 9mobile riding on the MNOs infrastructure after an agreement have been sealed.
The implication of this development is that the telecoms space would further be democratised, paving ways for improved service offerings and competitive pricing, especially around voice and data services.
While the Commission had created various categories of licences under the MVNO framework, which range from tier 1 to tier 5, the companies licensed are in categories 2 to 5, while no company has acquired a tier 1 licence, which is the lowest.
NCC database showed that seven companies, which included Routelink Integrated Systems Ltd; Hazon Technologies Limited; Asel Telecom Nigeria Limited; Briclinks Africa Plc; Pisi Mobile Services Limited; Univasa Nigeria Limited; and Imose Technologies Limited were licensed in the tier 2 category while seven others- Amics Technologies Limited; Zegtel Limited; Telewyz Limited; Siu Telecommunications Network; Abrindex Nigeria Limited; Metropolitan Consortium Nigeria Ltd; and IPNX Nigeria Limited Companies got licences in the tier 3 category.
Those licensed as tier 4 operators include Imbil Telecoms Solutions Nig. Ltd; Environmental Expressions Limited; and DMK Telecommunication Nig. Ltd.
Similarly, eight companies, including Systegra Technologies Limited; Choffan Communications Limited; Mab Consultant and Associates Ltd; H & Y Business Global Limited; Taima Technologies Ltd; Global Communication Extension Services Ltd; USKS Ventures International Ltd; and Paribas Communication Limited got liences in tier 5 category,.
Further, through the issuance of the MNVO licence to the 25 companies, the telecoms regulator generated not less than N5.9 billion for the government as licensing fees. According to the framework released by the NCC, the 10-year tenured MNVO licences come at different prices.
The highest in the categories, the tier 5 licence costs N500 million, while tier 4 goes for N200 million. Both the tier 3 and tier 4 licences cost N130 million and N60 million respectively, while the tier 1 licence is to be issued at N35 million.
Speaking at the first “Talk-To-The Regulator” Forum (TTTR) for the Year 2023 in Bayelsa, the CEO of NCC Prof Umar Danbatta, had expressed the readiness of the Commission to begin MVNO services in the country.
“To keep up to date with developments in the industry, the Commission has equally taken measures to improve regulations to accommodate the rapid and continuous development. Some of the interventions and responses of the Commission include but are not limited to facilitating the Roll-Out of 5G service provision, and the introduction of a Mobile Virtual Network Operator (MVNO) Licence to bridge the gap between unserved and underserved areas,” he had said.
Prof Danbatta said the local market is reported to have a demand for differentiated services with lots of gaps in several sectors, especially mobile to fixed market, M2M, B2B, and rural networks.
While calling for more industry collaboration, the NCC CEO said the growing concern of over-the-top (OTT) players eating into operator’s average revenue per user (ARPU) offers opportunity for MVNOs to partner with MNOs, leading to some revenue going back to the MVNOs through wholesale agreements.
SOURCE: THENATION
