The Nigerian Communications Commission (NCC), has been granted Mobile Virtual Network Operator (MVNO) licenses to 25 companies to create a robust and improved telecom industry.
These licenses will enable them to offer mobile services via reseller agreements, and is expected to provide competitive offerings in the telecoms market and lower the costs of calls and data for subscribers.
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.
According to NCC, the licence is subject to revocation or suspension under the same conditions set within Condition 21 of the Unified Access Service license framework.
The license can also be revoked or suspended if the licensee violates the MVNO agreement between itself and the MNO, or violates any of the conditions stated within this framework. If a licensee operates beyond the scope of the tier it has indicated and paid the license fees for.
Speaking at the first “Talk-To-The Regulator” Forum (TTTR) for the Year 2023 in Bayelsa, the Commission’s Executive Vice Chairman (EVC), Prof. Umar Danbatta, said the Nigerian telecom industry has witnessed several milestones, including the rapid growth in technology.
He noted that such growth is redefining service delivery, and creating wide and high expectations from all stakeholders.
He said: “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.”
According to him, each of these license categories has a long duration of 10 years validity before renewal, adding that the Commission is currently restructuring all its licences 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.
He said the companies listed below are those that have paid their licence fees in full and have collected their certificates for the respective telecommunications undertaking before the reclassification into Class and Individual Licences.
The license can also be revoked or suspended if the licensee violates the MVNO agreement between itself and the MNO, or violates any of the conditions stated within this framework.
MVNOs Licensees
According to the NCC, Mobile Virtual Network Operators licence is a five-tier classification that has distinctive services to be offered by the players in different tiers.
No company was registered for the Tier-1 category.
Tier 2 Category: Seven companies were licensed in the tier 2 category. They 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.
Tier 3 Category: Also, seven companies were licensed, including Amics Technologies Limited; Zegtel Limited; Telewyz Limited; Siu Telecommunications Network; Abrindex Nigeria Limited; Metropolitan Consortium Nigeria Ltd; and IPNX Nigeria Limited.
Tier 4: Four companies including Imbil Telecoms Solutions Nig. Ltd; Environmental Expressions Limited; and DMK Telecommunication Nig. Ltd. were licensed.
Tier 5: Eight companies were licensed – 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.
Tier services
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 licence.
