Growth, competition, innovation seen in MVNOs 2024 Nigeria entry

Telecom industry set for game-changing transformation

• MVNOs to disrupt structure of MNOs dominance

• Break MNOs limited consumer choice

• Improved service quality, innovative pricing, customer satisfaction expected

• Clear, supportive regulatory frameworks essential 

PHILLIP ISAKPA IN LONDON, UK

Nigeria’s telecommunication industry and its entire landscape are primed for game changing transformations with the entry this year of Mobile Virtual Network Operators (MVNOs), an assessment of the Nigerian market by global 4G/5G core and business support systems (BSS) vendor for communications service providers (CSPs), JSC Ingenium, has shown.

Indeed, the entry of MVNOs, according to the assessment prepared by Alfonso Reillo, MVNO sales director at JSC Ingenium, will serve as a catalyst for economic growth, fostering competition, innovation, and economic inclusion in the country.

“The telecommunications landscape in Nigeria has undergone a profound transformation in recent years. With the impending entry of Mobile Virtual Network Operators (MVNOs), the industry is set for a game-changing transformation. In 2024, Nigeria’s economic growth is expected to accelerate with the arrival of MVNOs, and we can confidently say that the telecommunications landscape in Nigeria has greatly improved the lives of its citizens,” Reillo wrote.

But in order to fully harness the economic potential of MVNOs as they enter the Nigerian telecommunication market this year, the market assessment by JSC Ingenium notes that it is paramount for regulatory bodies, industry stakeholders, and the government to work collaboratively, adding that “with a supportive regulatory environment and strategic investments, Nigeria’s telecommunications landscape can meet the evolving needs of consumers and propel the country towards sustained economic growth in the digital age.” 

The assessment noted that a few major Mobile Network Operators (MNOs) have dominated the Nigerian telecommunications market, but that this situation has limited  the choice of consumers. However, “the advent of MVNOs, entities that provide wireless communication services without owning the underlying network infrastructure, is set to disrupt this status quo,” it stated.

A raft of positive developments are being projected for the industry and the Nigerian economy with the entry of MVNOs, including offering enhanced competition and consumer choice; economic inclusion and empowerment; fostering innovation and technological advancements.

Competition is projected to intensify within the sector with the introduction of MVNOs leading to improved service quality, innovative pricing models, and a focus on customer satisfaction, Reillo noted in his assessment of the Nigerian market.

“As MVNOs enter the market, consumers will benefit from a wider range of tailored service offerings, including data plans, voice services, and bundled packages,” he explained.

The assessment further noted that the enhanced competition is expected to drive down prices, making telecommunications services more affordable for the average Nigerian citizen, which can lead to increased connectivity, as more individuals and businesses gain access to reliable and cost-effective communication services?

On the prospect of enhancing economic inclusion and empowerment, Reillo’s assessment noted that the arrival of MVNOs will foster economic inclusion by reaching underserved and remote areas, adding that this approach will not only benefit the underserved communities but also presents a lucrative business opportunity for MVNOs. 

“Traditional MNOs have faced challenges in expanding their networks to rural regions, often due to infrastructural limitations and economic considerations. However, MVNOs can leverage existing infrastructure through partnerships, extending coverage to areas that were previously overlooked,” Reillo wrote in the assessment.

According to the JSC Ingenium assessment of the 2024 Nigerian telecommunication landscape, the widespread availability of connectivity means that businesses in rural areas have the potential to thrive by connecting with larger markets and contributing to local and national economic growth, noting that “by investing in these areas, businesses can confidently expand their reach and contribute to the growth of their communities.”

It observed that increased access to mobile services provides individuals with the necessary tools to participate in the digital economy, access educational resources, and engage in e-commerce, thereby contributing to overall economic empowerment.

“The entry of MVNOs into the Nigerian telecommunications market is expected to stimulate job creation and infrastructure development,” Reillo stated in his assessment of the Nigerian telecom market.

With MVNOs needing to work with existing MNOs, the Ingenium assessment stated that collaborations and partnerships between MVNOs and existing MNOs will require investments in network expansion, IT systems, and customer support infrastructure, which will generate employment opportunities across various sectors, from technical roles to customer service and sales positions.

MVNOs entry into the Nigerian telecommunication ecosystem is also expected to enhance the already growing need for telecom services in both urban and rural areas, which would now require continuous investment in network infrastructure, JSC Ingenium noted, adding that this can stimulate economic activities related to the construction and maintenance of cell towers, fibre optic networks, and other associated infrastructure, providing a boost to the construction and technology sectors.

MVNOs also offer opportunities for innovation and technological advancements, Reillo noted in his assessment, observing that their unique perspective to the telecommunications industry is characterised by agility and a focus on niche markets. 

“This can stimulate innovation as MVNOs introduce new products and services to differentiate themselves in the market. From data-centric plans to innovative payment solutions, the influx of MVNOs is expected to introduce a wave of creativity that benefits both consumers and the broader industry,” the Ingenium assessment article stated.

The article further pointed out that the partnership between MVNOs and MNOs can result in the implementation of cutting-edge technologies like Internet of Things (IoT) solutions and artificial intelligence in telecommunications services, with such innovations offering the possibility of generating fresh business prospects and consolidating Nigeria’s position as a technological innovation hub in Africa.

It drew attention to potential regulatory challenges that MVNOs entry poses amid the exciting prospects, but these can be addressed.

“Clear and supportive regulatory frameworks will be essential to facilitate the smooth integration of MVNOs into the Nigerian telecommunications market. We believe that regulatory bodies should ensure a level playing field, fostering healthy competition while safeguarding consumer interests,” the assessment article admonished.

In addition, it called for addressing security and privacy concerns, which it believed will build trust in the new telecommunications ecosystem. “Robust data protection measures and cybersecurity protocols are essential to safeguard user information and maintain the integrity of telecommunications services,” Reillo advised in the Nigerian telecom market assessment article.