NCC suspends  MVNO licence,2 others to review market dynamics 

Joy Agwunobi

The Nigerian Communications Commission (NCC) has announced a temporary suspension of new licence issuance to operators in three telecommunications categories to facilitate a comprehensive review of market saturation, competition levels, and current market dynamics.

Reuben Muoka, the director of Public Affairs at NCC, disclosed this in a public notice issued on Friday, noting that the three suspended categories are Mobile Virtual Network Operator (MVNO), Interconnect Exchange (IX), and Value Added Service Aggregator (VAS).

The commission  said the suspension is in line with its powers under the Nigerian Communications Act (NCA) 2003 to grant and renew licences, promote fair competition, and develop the communications Industry.

Although new applications are suspended, the NCC  stated that it will continue to consider and process all pending applications for the affected licences.

“The public is invited to note that during the suspension period commencing on 17th of May, 2024, new applications for the aforementioned licences will not be accepted. This is without prejudice to pending applications before the Commission which will be considered on its merits”, the notice reads.

The Mobile Virtual Network Operator (MVNO) licence, introduced by the NCC over a year ago, allows companies to sell mobile services under their brand name without owning a mobile spectrum licence, leveraging the network of a licensed mobile operator. This licence has been  issued to 43 operators with the aim of enhancing rural connectivity and reducing telecom service costs.

The Interconnect Exchange Licence enables the interconnection of multiple independent entities, facilitating the seamless transfer of electronic communications between them. While the Value Added Service (VAS) Aggregators offer a range of non-core network telecommunication services that go beyond standard voice calls.