The Nigerian Communication Commission (NCC) has announced a temporary suspension of new license issuance to operators in three categories: Mobile Virtual Network Operator License, Interconnect Exchange License, and Value Added Service Aggregator License.
This suspension is aimed at enabling a thorough review of market saturation, competition level, and current market dynamics.
Mobile Virtual Network Operator (MVNO) is a company that provides mobile services under its brand name using the network of a licensed mobile operator, without owning a mobile spectrum license.
There are currently around 25 MVNOs in Nigeria.
Related news: NCC Stands Firm to Disconnect Unlinked SIMs on Friday
The Interconnect Exchange License facilitates the interconnection of multiple independent connecting entities to transfer electronic communications.
Value Added Service (VAS) Aggregators provide non-core network telecommunication services such as internet, directory service, paging service, voice mail, prepaid calling card service, call center services, content services, and vehicle tracking.
The NCC’s decision aligns with its powers under the Nigerian Communications Act 2003 to grant and renew licenses, promote fair competition, and develop the communications industry.
The public notice issued by the NCC, was posted on its X handle on Friday and signed by the Director of the Public Affairs Department, Reuben Muoka.
The statement titled, “Temporary Suspension Of The Issuance Of Communications Licences In Three Categories” stated that the suspension aims to review competition levels, market saturation, and market dynamics in the mentioned categories.
The suspension does not affect pending applications, which will be considered based on their merits. However, new applications for the aforementioned licenses will not be accepted during the suspension period, starting from May 17, 2024.
The telecommunications sector in Nigeria has been facing challenges such as high inflation, currency devaluation, multiple taxation, prohibitive right-of-way charges, inadequate power supply, and vandalism of infrastructure.
These issues have raised concerns about sustainability and efficient service delivery in the sector.
You can also read: NCC Suspends MTN-Glo Disconnection: 21-Day Hold After Resolution Agreement