NCC Suspends Issuance Of Virtual Operator Licence, 2 Others

The Nigerian Communications Commission (NCC) has announced a temporary suspension of new licence issuance for operators in three categories.

The license categories include Mobile Virtual Network Operator Licence, Interconnect Exchange Licence, and Value Added Service Aggregator Licence.

This move aims to enable a thorough review of market saturation, competition levels, and current market dynamics.

A Mobile Virtual Network Operator (MVNO) is a company that sells mobile services under its brand name without owning a mobile spectrum licence, instead using the network of a licenced mobile operator. Nigeria currently has at least 25 such operators.

The Interconnect Exchange Licence allows the interconnection of more than two independent entities to facilitate electronic communications transfer.
Value Added Service (VAS) Aggregators provide non-core network telecommunication services beyond standard voice calls, including internet, directory service, paging service, voicemail, prepaid calling card service, call centre services, content services, and vehicle tracking.

The NCC’s decision is based on its powers under the Nigerian Communications Act 2003, which grants the authority to issue and renew licences, promote fair competition, and develop the communications industry.

In a public notice posted on its X handle on Friday, the NCC stated, “In line with its powers under the Nigerian Communications Act 2003 to grant and renew licences, promote fair competition and develop the Communications Industry, the Nigerian Communications Commission (The Commission) hereby informs all stakeholders of a temporary suspension on
issuance of new licenses in the following categories: Interconnect Exchange Licence, Mobile Virtual Network Operator License, and Value Added Service Aggregator Licence.”

“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 notice added.

The suspension, effective from May 17, 2024, does not affect pending applications, which will be considered on merit. Stakeholders are advised to direct any inquiries or requests for clarification regarding the suspension notice to [email protected].