The Nigerian Communications Commission (NCC) has extended the deadline for licensed Mobile Virtual Network Operators (MVNOs) in Nigeria to launch their services by an additional six months. The new deadline for the rollout is now set for October 2024.
Initially, the NCC had granted licenses to 43 companies to operate as MVNOs in Nigeria, with 25 of these being newly issued licenses. The commission categorized these licensees into tiers ranging from tier 1 to tier 5, enabling them to offer mobile services through reseller agreements.
The introduction of MVNOs is anticipated to inject competition into the telecoms market, potentially leading to reduced costs for calls and data for subscribers. This move aims to diversify service offerings and enhance affordability and accessibility within the telecommunications sector.
The initial batch of MVNA, MVNE, and MVNO licenses were granted on April 1st, 2023, with a requirement to commence services within one year, by April 1st, 2024. Each license category was issued with a tenure of 10 years before renewal.
However, ambiguities regarding operational protocols and negotiations with existing network providers led to delays in the anticipated April 1st, 2024 launch. Negotiations between Mobile Network Operators and MVNOs faced hurdles, causing friction between the parties.
In response, the Nigerian Communications Commission (NCC) intervened, granting an extension until October 2024 to address outstanding concerns. A recent letter from the NCC outlined regulatory clarifications regarding SIM Registration, Cloud Service Provider Requirements/Obligations, Commercial Basis for MVNO Implementation, and Revenue Share Formula. Negotiations must adhere to fair, reasonable, and non-discriminatory terms, aligning with Revenue Share Arrangements across MVNO tiers. The NCC retains the authority to intervene if negotiations fail or market power abuse is detected.
Furthermore, the NCC is finalizing operational rules, including SIM card functionality, data pricing, and profit sharing mechanisms between new and existing network providers. Once the review is complete, the NCC will communicate further details to licensees promptly.
MVNOs collaborate with existing network providers to deliver services under their brand, fostering competition and potentially offering better consumer deals. While these developments promise increased competition and consumer benefits, the realization of these advantages awaits the resolution of operational intricacies.
