NCC Suspends Issuance of MVNO, VAS and Other Licences

The Nigerian Communications Commission has suspended the issuance of communication Mobile Virtual Network Operator (MVNO), Interconnect Exchange, and Value Added Service Aggregator licenses, Techeconomy can report.

The announcement was contained in a public notice issued by Mr. Reuben Muoka, the director of Public Affairs at NCC, on Friday May 17, 2024.

NCC said the suspension is 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.

It, however, noted that all pending applications for the same licences would still be considered and treated accordingly.

Explaining the rationale behind the suspension, NCC in the public notice said,

“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. This is without prejudice to pending applications before the Commission which will be considered on its merits.”

NCC’s database shows that 45 companies are currently licensed as VAS aggregators. The VAS Aggregator licence was introduced in 2029 to guard against rising anti-competitive practices and other unfair sharing formulas between VAS licensees and the Mobile Network Operators (MNOs). The Aggregators play the role of the middlemen between the MNOs and the VAS providers.

The MVNO licence is the newest category of license introduced by the NCC. As of the last count, 43 companies have been licensed to operate in the five tiers of the licence. However, none of them have rolled out service yet.

An MVNO is a telecommunications product and service operator that rides on top of the infrastructure capacity of a fully licensed mobile telecommunication service provider or mobile network operator (MNO).