The licensing process for virtual mobile operators in Nigeria is nearing completion. These new operators should guarantee more competitive offers on the market and reduce the cost of calls and data for subscribers.

The Nigerian Communications Commission (NCC) has announced that it hopes to finalize the process for awarding operating licenses to mobile virtual network operators (MVNOs). It was during a forum organized by the media Business Remarks in Lagos, on the theme “Creating Awareness and Ensuring Sustainability of MVNOs in Nigeria’s 5G Ecosystem”.

The NCC said it has received license applications from interested companies until Oct. 11 and has already started the evaluation process. The regulator said it is awaiting final ratification of the project by its board.

On March 22, the NCC released its “Licensing Framework for the Establishment of Mobile Virtual Network Operators in Nigeria”. The document sets the terms and fees for acquiring MVNO licenses. Thus, companies wishing to provide telecom services using the infrastructure of a mobile network operator (MNO) will have to pay between 30 and 250 million naira ($72,000 and $600,000) depending on the level of the license that varies between one and five. The validity period of the license is 10 years, renewable.

The publication of the “License Framework for the Establishment of Mobile Virtual Network Operators in Nigeria” is the culmination of steps taken since 2017 by the NCC to open up the Nigerian telecommunications market to MVNOs. The regulator organized a workshop of various industry stakeholders in 2020 to collectively consider the potential benefits, technical feasibility, market demand and appropriate model for the adoption of this category of players in Nigeria. At the end of this workshop, a first draft of the framework was published.

The NCC’s renewed interest in introducing MVNOs to the Nigerian telecom market is part of the regulator’s commitment to improving telecom services in Nigeria.

“  The commission has introduced mobile virtual network operator licenses which will generate jobs and also bridge the gap between the unserved and the underserved in society. It will also promote competition and provide choices for telecom consumers  ,” said Umar Danbatta (pictured), executive vice president of the NCC.

Source: Agence Ecofin