NCC floats new operators riding on MNO facilities on N250m licence
By Jeph Ajobaju, Chief Copy Editor
A hefty licence fee of up to N250 million is expected to be paid by Mobile Virtual Network Operators (MVNOs) to ride on the infrastructure of the four major Mobile Network Operators (MNOs) but tariff gains for subscribers are on the table.
This is the plan of the Nigerian Communication Commission (NCC) which said mobile subscribers will have more choices once it licenses MVNOs.
The new entrants will provide mobile services like MTN, Airtel, Globacom, and 9mobile, leveraging existing infrastructure across the country.
The NCC has published an advertorial calling on companies to apply for the license within 30 days. Mobile network operators are not eligible to apply.
MVNO guidelines the NCC released earlier in the year said the cost of the licence in five different categories ranges from N30 million to N250 million.
“Pursuant to the NCA 2003, Licensing Regulation 2019, and other subsidiary Regulations, the Commission has created an enabling environment where various players provide diverse services based on licenses issued by the Commission.
“In its drive to create an enabling environment, the Commission hereby introduces Mobile Virtual Network Operators (MVNOs) License that will generate employment and bridge the gap between the unserved and the Underserved in Society.
“It will also further engender competition and provide choices for telecommunication consumers,” the NCC said in the advertorial published on its website.
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Licence classifications
The NCC listed the five licence classifications as
- Tier 1 – Virtual Operator
- Tier 2 – Simple Facilities Operator
- Tier 3 – Core Facilities Operator
- Tier 4 – Virtual Aggregator/Enabler
- Tier 5 – Unified Virtual Operator
“Please note that Tier 1-4 entrants are expected to pay 5% of the License fee as non-refundable administrative charges, while tier 5 entrants are to pay Fifty Million Naira (N50, 000,000.00) non-refundable administrative fees prior to negotiations with the MNOs,” the regulator explained, according to Nairametrics reporting.
About MVNO
An MVNO is a telecom product and service operator that rides on the infrastructure capacity of a mobile telecom service provider or MNO.
It leverages existing facilities across the country to provide services without having to invest in its own infrastructure.
Entrance of MNVOs is expected to provide competitive offerings and lower the cost of calls and data.
The NCC said MVNOs would help drive efforts to extend telecom services to more rural, under-served, and unserved communities nationwide.
Industry experts believe that MVNOs buying capacity from MNOs will enable them to quickly rise in the market through a business model that passes savings down to the consumer.
MVNOs can also offer bespoke services unlike MNOs with generic offerings that suit the masses, they added.
