The Nigerian Communication Commission (NCC) temporarily suspends fresh licences issuance across three key categories. These include the Mobile Virtual Network Operator Licence, Interconnect Exchange Licence, and Value Added Service Aggregator Licence.
A Mobile Virtual Network Operator (MVNO) functions by marketing mobile services under its brand name, utilizing the network of a licensed operator, without owning a mobile spectrum licence. Presently, there are around 25 operators functioning within this sphere. The Interconnect Exchange Licence facilitates electronic communication transfer by connecting multiple independent entities. Additionally, Value Added Service (VAS) aggregators offer supplementary telecommunication services beyond standard voice calls, like internet and directory service.
The NCC’s decision to halt new licence issuance is in accordance with its mandate under the Nigerian Communications Act 2003. It underscores the need for a comprehensive review of market saturation, competition levels, and existing market dynamics. During the suspension period, commencing on May 17, 2024, the NCC will not entertain new applications for these licences, although it will evaluate pending applications on merit.
The telecommunications sector confronts various challenges affecting its sustainability and service efficiency, including record-high inflation and currency devaluation. Additionally, multiple taxation and regulations, along with prohibitive right-of-way charges, exacerbate these issues. Despite these hurdles, the NCC’s proactive stance underscores its commitment to addressing market dynamics and fostering equitable competition in the telecommunications landscape.
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