Nigeria Telecoms Sector Gets New Players as NCC Licenses 25 MVNOs (SEE LIST)

MVNO is a telecommunications product and service operator that leverages the capacity of a fully Licenced Telecommunications Service provider or Mobile Network Operator (MNO). The MVNO reaches a “Wholesale Agreement” or “Revenue Sharing Agreement” with the telecommunications company through negotiations and delivers its services after bulk-purchasing resources from the telco.

The defining difference between an MVNO and an MNO is that the former has no ownership whatsoever of spectrum elements, irrespective of its operational model.

Companies will be permitted to sell repackaged voice, SMS, MMS, and data services under their brands once they have acquired them from the three major operators.

Speaking at the first “Talk-To-The Regulator” Forum (TTTR) for the Year 2023 in Bayelsa, the Commission’s EVC, Prof Umar Danbatta stressed that the Nigerian telecom industry has witnessed milestones in more ways than one, including the rapid growth in technology, which is redefining service delivery, and creating wide and high expectations from all stakeholders.

In his words, “To keep up to date with developments in the industry, the Commission has equally taken measures to improve regulations to accommodate the rapid and continuous development. Some of the interventions and responses of the Commission include but are not limited to facilitating the Roll-Out of 5G Service provision, and the introduction of a Mobile Virtual Network Operator (MVNO) Licence to bridge the gap between unserved and underserved areas.

Recall, NCC EVC said at a recent event organized by Business Remarks that the commission introduced mobile virtual network operators (MVNOs) licenses to generate employment and also bridge the gap between the unserved and the underserved in society. It will also further engender competition and provide choices for telecommunications consumers,” he said.

According to him, each of these license categories has a long duration of 10 years validation tenure before renewal. Speaking further, he stated the commission is currently restructuring all its licenses due to global technological advancement. This includes the terms of the license, scope, conditions, limitations, benchmark, and also pricing policies as some of these are already obsolete.

Also Read: Expert Highlights Ways MVNOs Can be Successful in Nigeria at TSSF 2.0

Speaking further, the commission noted the companies listed below are those that have paid their license fees in full and have collected their license documents for the respective telecommunications undertaking before the era of reclassification of Licences into Class and Individual Licences.

MVNOs Licensees and Their Tiers

NCC noted the Mobile Virtual Network Operators, MVNOs license is a five (5) tier classification that has distinctive services to be offered by the players in different tiers. Business Remarks discovered no company was registered for the tier-1 category.

MVNOs- Tier 2 Category

7 companies were licensed in the tier 2 category. These include Routelink Integrated Systems Ltd; Hazon Technologies Limited; Asel Telecom Nigeria Limited; Briclinks Africa Plc; Pisi Mobile Services Limited; Univasa Nigeria Limited; and Imose Technologies Limited.

MVNOs- Tier 3 Category

NCC database revealed companies licensed under the tier 3 category are also 7 in number.
They are Amics Technologies Limited; Zegtel Limited; Telewyz Limited; Siu Telecommunications Network; Abrindex Nigeria Limited; Metropolitan Consortium Nigeria Ltd; and IPNX Nigeria Limited.

MVNOs- Tier 4 Category

Companies licensed as tier 4 MVNO operators include Imbil Telecoms Solutions Nig. Ltd; Environmental Expressions Limited; and DMK Telecommunication Nig. Ltd.

MVNOs- Tier 5 Category

In the tier 5 category, 8 companies were licensed. These include Systegra Technologies Limited; Choffan Communications Limited; Mab Consultant and Associates Ltd; H & Y Business Global Limited; Taima Technologies Ltd; Global Communication Extension Services Ltd; USKS Ventures International Ltd; and Paribas Communication Limited.

What Each Tier Stands for

Explaining the layers, NCC said Tier 1 operators are the Services Virtual Operators. This tier leverages its ability to offer services to its customers without owning any switching or intelligent network infrastructure. They do not control any numbering resources. Responsibilities lie with the host licensee to provide wholesale capacity to the V.O for delivery of its products and services.

Tier 2 is the Simple Facilities Virtual Operator, which assumes more control of the value chain, which allows it to significantly differentiate itself from its host. The VO does not have Core Switching and Interconnect capabilities but can set up its own Intelligent Network (IN) to provide its own IN services to the customer.

Tier 3 are Core Facilities Virtual Operators, which rely on its technical and commercial prowess to launch and operate a full core network with switching and interconnect capabilities.

Tier 4 are Virtual Aggregators/Enablers, responsible for aggregating and/or enabling VO services within the market. It relies on a model in which it stands as a middleman between the MNO and multiple VOs.

Tier 5 are Unified Virtual Operators. A VO within this tier can decide the level of service it desires to offer to range from tier–1 to tier–4. This gives the VO freedom of choice to deploy its services the way it deems fit as long as it still has a valid license.