The Nigerian Communications Commission, NCC, has given the licensed Mobile Virtual Network Operators (MVNOs) in Nigeria an extra 6 months deadline to roll out their services in the country.
According to the commission, the already licensed MVNOs are expected to roll out their services by October 2024.
Recall, that Business Remarks reported that about 43 companies were awarded licenses by NCC to operate as MVNOs in Nigeria, out of which 25 new MVNO licenses were initially granted.
The commission divided the licensees into different categories ranging from tier 1 to tier 5. These licenses will enable them to offer mobile services via reseller agreements. The entrance of the MNVO is expected to provide competitive offerings in the telecoms market and lower the costs of calls and data for subscribers.
The first batch of MVNA, MVNE, and MVNO licenses was awarded on April 1st 2023 and were expected to start rolling out their services within one year of obtaining their licences, which happened to be on or before April 1st 2024.
According to the commission, each of these license categories has a long duration of 10 years of validation tenure before renewal.
The Delay
These companies were originally supposed to launch by April 1st, 2024. However, important details about how they would operate and negotiate with existing network providers were unclear. This lack of clarity caused delays.
According to a source who pleaded anonymity, the negotiations between the
Mobile Network Operators and MVNOs haven’t been smooth as there was some disagreement between both parties.
Reports have it that, the regulator has now issued a letter clarifying key regulations and operating requirements for the mobile virtual network aggregators, enablers and operators (MVNA, MVNE, MVNO) licensees and host networks in Nigeria.
What’s the Good News?
The Nigerian Communications Commission (NCC) listened to the companies’ concerns and granted them more time to iron out the details. This means they now have until October 2024 to launch their services.
The letter provides a range of clarifications, although they are pending the finalization of NCC’s review. They include SIM Registration, Cloud Service Provider Requirements/Obligations, as well as the Commercial Basis for MVNO Implementation and the Revenue Share Formula.
Also Read: Experts Chart Ways for Business Sustainability for MVNOs Operators in Nigeria
In line with other regulatory authorities, NCC’s Commission regards the MVNO and Host Network Operator (HNO) relationship as a commercial arrangement between the parties and encourages commercially negotiated MVNO implementation.
However, they must be negotiated on fair, reasonable, and non-discriminatory terms and must be in line with the Revenue Share Arrangement with the different tiers of MVNOs.
Stressing further, NCc noted that the Commission reserves the right to exercise its powers of intervention, where negotiations fail or where abuse of market power is observed.
In addition, NCC is still working on finalizing the rules for how these companies will operate, such as how SIM cards will work, how data will be priced, and how profits will be shared between the new companies and the existing network providers. The commission will finalize the review and come back to the licensees within the shortest possible time.
MVNOs partner with existing network providers to offer phone and data services under their brand. This can lead to more competition and potentially better deals for consumers. Overall, this is a positive step for mobile phone users in Nigeria, as more competition could lead to lower prices and more choices for consumers. However, we’ll have to wait a bit longer to see these new options become available.