The Nigerian Communications Commission (NCC) has announced a temporary suspension on issuing licenses in three key categories: Mobile Virtual Network Operator (MVNO), Interconnect Exchange, and Value Added Service Aggregator.Â
This announcement, made through a public notice by the Director of Public Affairs, Mr. Reuben Muoka, takes effect from May 17, 2024, but it’s emphasized as a temporary measure.
This suspension means that companies won’t be able to apply for new licenses in these areas for the time being, although existing applications will still be processed.
The NCC cites its authority under the Nigerian Communications Act (NCA) 2003 to regulate licenses, ensure fair competition, and foster industry growth as the basis for this decision.
The purpose of the suspension is to conduct a comprehensive review of various factors within these sectors, including competition levels, market saturation, and current industry dynamics.
Currently, there are 45 licensed Value Added Service Aggregators, introduced in 2029 to prevent anti-competitive practices, while Interconnect Exchanges, with 37 operating companies, serve as central hubs for connecting calls between mobile network operators.
MVNOs, the latest category, have 43 licensed companies aiming to offer services without the need for their own infrastructure, potentially reducing costs for consumers.
The introduction of MVNOs is anticipated to bring competitive offerings and potentially lower costs for calls and data, while also supporting the government’s efforts to expand telecom services to rural and underserved areas.
