- The Nigerian Communications Commission (NCC) has notified stakeholders in the communication sector of a temporary suspension of the issuance of new communication licences in three categories: Interconnect Exchange Licence, Mobile Virtual Network Operator Licence, and Value Added Service Aggregator Licence.
- This comes nearly a year after the NCC granted 25 companies Mobile Virtual Network Operator (MVNO) licences to bridge the country's unserved and underserved areas.
- The Commission claims that the suspension is necessary to conduct a thorough review of several key areas within these categories, such as current competition, market saturation, and market dynamics.
Besides, the NCC stated that during the suspension period, which begins on May 17, 2024, it will not accept new applications but does not affect pending applications, which will continue to be evaluated on their merits.
“In line with its powers under the Nigerian Communications Act (NCA) 2003 to grant and renew licenses, promote fair competition and develop the communications industry,” it said.
An MVNO operates by leasing radio spectrum from an established Mobile Network Operator (MNO) to provide specialised services to customer segments that the established MNO may not fully address.
In May 2023, Interswitch acquired a Tier 5 MVNO licence from the Nigeria Communications Commission (NCC) for 500 million ($1.08 million) through its subsidiary, Systegra Technologies Limited. This licence will allow Interswitch to offer affordable 4G or 5G services to Nigerians and expand telecommunication services to rural areas.
In March 2024, companies spent ₦8.6 billion on MVNO licences, despite uncertainty in the business.
The Interconnect Exchange Licence is a network facility that allows more than two independent connecting entities to interconnect and transfer electronic communications.
VAS aggregators are entities licenced by the NCC to serve as a concentration point for VAS providers, reducing the number of devices directly connected to network operators.
The NCC granted licences to ten new Value-Added Service (VAS) providers in December 2019, expanding the market and improving scalability. VAS's market value was estimated to be $200 million, with a projected increase to $500 million by 2024.
