43 businesses have invested a total of N8.6 billion to get the licences necessary to offer telecommunications services in Nigeria via the Mobile Virtual Network Operator (MVNO) framework.
Stakeholders are concerned that because the established mobile network operators (MNOs), which include MTN, Airtel, Globacom, and 9mobile, are now controlling the market, the new operators may find it difficult to attract new clients.
The Nigerian Communications Commission (NCC) reports that as of December 2023, there were 224.4 million active subscriptions among the four mobile network operators.
With the exception of the continuous implementation of the NIN-SIM linking ban, which may result in some customers being removed from the networks, the figure is anticipated to have increased during the previous two months.
According to their contractual arrangements, the 43 MVNOs will use the MNO’s infrastructure to offer telecom services in underserved and unserved regions of the nation. However, given that the MNOs are currently finding it difficult to spend more on infrastructure due to the current FX crisis, this creates greater concerns regarding capacity.
The country’s biggest telecom provider, MTN Nigeria, specifically warned reporters that the depreciation of the naira has limited its ability to invest more in infrastructure.
There are five categories of operators in this market, spanning tiers 1 through 5, according to the MVNO architecture that the NCC released.
As per the licencing system, the tier 5 licence, which is the highest category, costs N500 million, whereas the tier 4 licence costs N200 million. The tier 1 licence will be granted for N35 million, while the tier 3 and tier 4 licences will cost N130 million and N60 million, respectively.
Ten businesses have so far obtained the tier 5 licence, according to the NCC database, and have paid the regulator a total of N5 billion.
Six businesses have purchased tier 4 licences, spending N1.2 billion in total—N200 million for each licence. There are the most participants in the tier 3 category (15 enterprises have obtained licences). The total sum paid is N1.950 billion, with each licence costing N60 million.
Only one firm obtained a tier 1 licence, according to the NCC database, while eleven companies paid a total of N660 million for tier 2 licences.
The Services Virtual Operators are Tier 1 operators, under the NCC. This tier makes use of its capacity to provide services to clients even in the absence of switching or intelligent network infrastructure ownership. There are no numerical resources under their control. It is the host licensee’s responsibility to give the V.O. wholesale capacity so that it can deliver its goods and services.
