Telecoms

NCC Reviews MVNO Business Rules as 46 Licences Issued Across Nigeria

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The Nigerian Communications Commission (NCC) has begun a review of its Mobile Virtual Network Operator (MVNO) business rules as part of efforts to strengthen competition, improve regulatory efficiency and deepen access to telecommunications services across Nigeria.

The review comes as the commission disclosed that it has issued 46 MVNO licences across the five operational tiers established under the framework.

Speaking at a stakeholders’ forum on the MVNO business rules in Abuja, Aminu Maida, Executive Vice Chairman of the NCC, said the review is aimed at fostering innovation, enhancing the regulatory framework and supporting a more inclusive telecommunications ecosystem.

Represented by Usman Mamman, Director of Licensing and Authorisation at the NCC, Maida said the business rules were originally introduced to provide clarity on licensing requirements, operational responsibilities and the relationship between MVNOs and host Mobile Network Operators (MNOs).

“The MVNO business rules are designed to provide clarity on licensing, operational responsibilities and relationships with host network operators while safeguarding consumer interests and market integrity,” he said.

“At the same time, we expect full compliance, and the commission will continue to exercise its mandate to ensure that all operators adhere strictly to established guidelines.”

According to Maida, the MVNO framework was developed after extensive engagement with industry stakeholders and was designed to accommodate varying business models and technical capabilities within the telecoms sector.

He explained that the framework enables licensed operators to provide mobile communication services using the infrastructure of existing MNOs without owning radio spectrum or deploying nationwide radio access networks.

The NCC boss noted that the commission has so far issued 46 MVNO licences, comprising one Tier 1 licence, 11 Tier 2 licences, 16 Tier 3 licences, seven Tier 4 licences and 11 Tier 5 licences.

The introduction of MVNOs is expected to increase competition in the telecoms industry by enabling new entrants to offer specialised services, target underserved segments and provide alternative pricing models for consumers.

Earlier, Chizua Whyte, Head of Legal and Regulatory Services at the NCC, said the draft business rules were developed to provide a clear operational framework for MVNOs.

She noted that the emergence of MVNOs presents significant opportunities to stimulate innovation, deepen competition, promote service differentiation and expand consumer choice in Nigeria’s telecommunications market.

Whyte added that the stakeholder forum was convened to gather industry input before the revised framework is finalised.

On behalf of operators, Ken Nwabueze, President of the Association of Mobile Virtual Network Operators of Nigeria (AMVON), urged the regulator to prioritise enforcement and address concerns surrounding revenue-sharing arrangements between MVNOs and host network operators.

“As we define these rules, we plead with the commission to make enforcement a key component of the framework,” Nwabueze said.

Chidi Ibisi, a member of the Association of Telecommunications Companies of Nigeria (ATCON), identified delays in onboarding by host operators as one of the major challenges facing MVNO licensees.

He said the revised business rules should include clear timelines and procedures to prevent unnecessary delays and ensure that internal processes within host operators do not hinder the commencement of operations by licensed MVNOs.

The ongoing review of the MVNO business rules is expected to provide greater regulatory certainty for operators while strengthening competition and innovation within Africa’s largest telecommunications market.

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