Nigerian Communications Commission Halts Issuance of Key Licenses Amid MVNO Challenges

14 Jun 2024

The Nigerian Communications Commission (NCC) has announced a temporary suspension of issuing communication licenses in three critical categories. This decision comes as the commercial launch of the Mobile Virtual Network Operator (MVNO) category remains stalled.

The MVNO licenses, granted to 43 operators over a year ago, were designed to enhance rural connectivity and reduce telecom service costs. Chidi Aduzie, Chief Operating Officer of WTES Project, emphasized the importance of the MVNO initiative, stating, "The essence of the MVNO is to bridge the connectivity gap in Nigeria. It is not just taking internet service to rural areas, but also connecting the people in urban areas that are not digitally connected."

Despite these intentions, the MVNOs have yet to commence commercial operations. Sources indicate that this delay is due to several factors, including unresolved agreements between licensees and existing mobile network operators.

On Friday, the NCC shared via its official X handle that the suspension includes MVNO licenses, Interconnect Exchange Licenses, and Value Added Service Aggregator Licenses. The commission explained that this pause will allow for a thorough review of critical areas such as market saturation, competition levels, and current market dynamics.

The NCC clarified, “The suspension is in line with its powers under the Nigerian Communications Act 2003 to grant and renew licenses and promote fair competition.”

MVNOs are entities that do not own mobile network infrastructure but purchase network services from providers like Airtel and MTN to sell to their customers. Satya Mekala, Chief Executive Officer of Wireless Technology Labs, noted, “The MVNOs have the same license as mobile network operators like MTN, but they have to leverage MNOs’ networks to operate their businesses.”

This strategic suspension by the NCC aims to ensure a balanced and competitive telecommunications environment in Nigeria.

Play audio


Share:

Comments

No comments

Add your comment

Search Blog

Recent Posts

How Banks and Fintechs Determine Creditworthiness Banks and fintech companies in Nigeria are adoptin...
Metrospeed and Chevron Partner to Drive Lagos Metro Smart City Development Metrospeed Property Development Limited has announ...
Beware: Tria Stealer malware is targeting Android users’ WhatsApp and banking apps There has been an alarming rise in sophisticated c...
African Startups Raised Over $345 Million in May In May, startups across Africa attracted more than...
Each ChatGPT Query Uses 0.34 Watt-Hours of Electricity and a Drop of Water Sam Altman, CEO of OpenAI, has shed light on the e...

Related Post

Beware: Tria Stealer malware is targeting Android users’ WhatsApp and banking apps
There has been an alarming rise in sophisticated cyberattacks targeting Android...
MyNextCar Lands $10 Million to Expand Bolt’s Budget Ride-Hailing Fleet in South Africa
South African vehicle leasing company MyNextCar (MNC) has secured $10 million in...
Meta Plans to invest $10bn in Scale AI
Meta Platforms Inc. is set to make a major move in the artificial intelligence s...
Logo

Accelerating the growth of Africa's tech ecosystem