Making certain Easy Integration of MVNOs Into Nigeria’s Telco Market

September 16, (THEWILL) – The current suspension of operational licences to communication firms in three classes – Cellular Digital Community Operator (MVNO), Interconnect Alternate and Worth Added Service Aggregator – by the business regulator, Nigerian Communications Fee (NCC), comes with a pinch of salt.

The suspension, although momentary, in line with the Director of Public Affairs at NCC, Reuben Muoka, is basically one thing to fret about as it’s coming at a time Nigerians have been anticipating the roll-out of the much-anticipated MVNOs after a lot of them have been licenced final yr.

THEWILL recollects that in direction of the tip of final yr, about 25 MVNO licences have been awarded, thus elevating the hope of a novel alternative for the entry of recent and revolutionary providers and new worth cell choices into the nation.

The overwhelming response to the NCC’s supply of recent MVNO licences had been greater than optimistic and had been thought of successful story able to positioning the nation as one of many main financial powerhouses on the African continent.

Nonetheless, whereas the variety of MVNO licences awarded up to now has risen to about 43, it’s actually worrisome that none of those MVNOs has began operations, thereby depriving tens of millions of Nigerians of the much-anticipated advantages.

With greater than 226 million cell traces already, representing simply over 100% cell penetration within the nation, barely 60 p.c of the Nigerian inhabitants has entry to cell Web and solely 4 p.c of the inhabitants has entry to 4G.

This, precisely, is the place the MVNOs are anticipated to take advantage of sense as drivers of the cell market.

Extra worrisome is the truth that nearly a yr after the train commenced, the frenzy and hope of the nation going from having 4 cell operators – MTN, Globacom, Airtel and 9Mobile – to over 40 new ones, a milestone anticipated to revolutionise the nation’s telco sector – are nearly turning into an phantasm, thus defeating the aim of the complete train.

Now, the technique, which is aimed toward boosting competitors within the cell sector by bringing cell telecommunications providers to rural, distant and underserved areas of the nation, is about to be punctured even earlier than its take-off.

Whereas we agree with NCC that the suspension turned essential to allow the Fee conduct a radical assessment of a number of key areas inside these classes, together with the present degree of competitors, market saturation and present market dynamics, we urge the Fee to make use of the interval of the suspension to quick monitor the method for the roll-out of the MVNOs to allow Nigerians benefit from the immense alternatives therein.

The fast roll-out of the MVNOs subsequently turns into mandatory now to interrupt the monopoly of the 4 large networks that are even contemplating a hike of their tariffs at a time of financial hardship within the nation. With none doubt, we sincerely imagine that NCC actually has an enormous function to play in making certain the sleek integration of the MVNOs into the Nigerian telco market and the time to take action is now.