NCC suspends issuance of new licences to virtual network operators

The Nigerian Communications Commission (NCC) has announced the temporary suspension of new licences to mobile virtual network operators (MVNO), interconnect exchange, and value-added service (VAS) aggregators.

NCC announced in a statement signed by Reuben Muoka, director of public affairs department, on Friday.

The suspension commenced on May 17.

An MVNO is a company that does not own a mobile spectrum licence but sells mobile services under its brand name using the network of a licensed mobile operator.

Currently, there are at least 25 operators.

In 2023, the commission started the issuance of licences to MVNOs in the country

The interconnect exchange is a network facility that enables the interconnection of more than two independent connecting entities to facilitate the transfer of electronic communications, while VAS aggregators are non‐core network telecommunication services which are beyond standard voice calls.

These services include internet, directory service, paging service, voice mail and prepaid calling card service, call centre services, content services, and vehicle tracking.

NCC said the suspension is aimed at ensuring a thorough review of the operators’ market saturation and competition.

“In line with its powers under the Nigerian Communications Act (NCA) 2003 to grant and renew licenses, promote fair competition and develop the Communications Industry, the Nigerian Communications Commission (the commissions) hereby informs all stakeholders of a temporary suspension on issuance of new licenses in the following categories,” NCC said.

“Interconnect exchange license;  mobile virtual network operator License; value added service aggregator license.

“This temporary suspension is necessary to enable the commission to conduct a thorough review of several key areas within these categories, including the current level of competition, market saturation and current market dynamics.

“The public is invited to note that during the suspension period commencing on 17th of May, 2024, new applications for the aforementioned licenses will not be accepted.”

NCC added that pending applications before the suspension will be considered on merits.

The commission also advised applicants to forward enquiries to [email protected] for clarification with respect to the suspension notice.