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
No comments