Vitel Wireless, which is headquartered in Lagos, was licensed by the Nigerian Communications Commission (NCC) in 2023 and will be the country’s first MVNO.

Its launch is set to shake up Nigeria’s telecoms market with Vitel offering an alternative to the services of the country’s four major operators—MTN, Airtel, Globacom and 9Mobile.

Vitel’s network will go live in Nigeria’s major cities first and then expand nationwide. Pricing will be competitive for basic services like voice, SMS and data and Vitel will also focus on value added services like location-based services (LBS) and IOT.

Vitel Wireless is building Experience Centres in Lagos, Abuja, Enugu, Port Harcourt, Kano and Nigeria’s other major cities where customers can purchase SIM cards.

In addition, Vitel is building a distributor network with SIM cards available through retail channels and online subscriptions using eSIMs.

WTL has already completed the integration of Vitel’s infrastructure with the network of a major MNO and has also enabled international roaming using its proprietary advanced core systems.

This means that Vitel will be able to launch as soon as the NCC approves its network and operational model.

Kenneth Nwabueze, CEO of Vitel Wireless, said

“We are going to be offering innovative solutions beyond what the big four operators who have dominated Nigeria’s telecoms market are currently offering. We are investing heavily in our operations, and our work with WTL will enable us to launch in Q2, 2025”.

WTL, which is headquartered in Belgium, has been active in Nigeria and across Africa for more than 20 years working with operators of all sizes to rollout both urban and rural networks. Its work has garnered widespread recognition and industry awards.

WTL has already enabled the networks of two of the 46 new MVNOs licensed by the NCC, and recently announced that it is working with Nigeria’s first Mobile Virtual Network Enabler (MVNE) which is constructing new mobile network infrastructure to provide capacity for emerging MVNOs through its Platform as a Service (PaaS) model.

Mr. Satya Mekala, CEO of WTL, said

“I congratulate The NCC for licensing new operators to improve competitiveness, increase rural coverage and drive the adoption of digital services including Fintech, Edtech, Agriculture, IOT and more. I further thank Vitel for giving us the opportunity to showcase our advanced core technologies and wish them great success in becoming the first ever MVNO in Nigeria”.

This initiative aims to enhance mobile connectivity for Nigeria’s 234+ million residents, addressing the current challenges of low broadband penetration and poor quality of service.

Nigeria’s telecom sector is predominantly dominated by four major operators—MTN, Airtel, Globacom, and 9Mobile – with only 29% of Nigerians regularly accessing the mobile internet, (GSMA figures) due to poor coverage and a variety of other issues.

In Q2 2023, the Nigerian Communications Commission (NCC) adopted a new strategy to boost coverage and adoption and issued 43 Mobile Virtual Network Operator (MVNO) licenses to amplify service coverage, particularly in unserved and underserved regions.

Amongst the licensees was MCX which obtained a tier 4 MVNE license aimed at constructing new mobile network infrastructure to provide capacity for emerging MVNOs through its Platform as a Service (PaaS) model.

“Coverage, poor quality of service, costs and inflexible value propositions in Nigeria have persisted for too long. We are committed to leveraging innovative technology to create more competitive networks that reduce costs for consumers and provide value propositions that suit their needs,” stated Mr. Habib Ahmed, CEO of MCX.

He emphasised WTL’s pivotal role in delivering the carrier-grade core systems required for a comprehensive suite of mobile services, encompassing voice, data, and value-added features to meet the diverse needs of MVNO clients.

WTL, which is headquartered in Belgium, has been active in Nigeria and across Africa for more than 20 years working with operators of all sizes to rollout both urban and rural networks. Its work has garnered widespread recognition and industry awards.

WTL has already partnered with two of the 43 new MVNOs licensed by the NCC, and is firmly committed to enhancing telecom infrastructure in the region.

Mr. Satya Mekala, CEO of WTL said:

“This partnership is about empowering a new entrant to make significant impact in the Nigerian telecom market. We are committed to supporting MCX in its journey from a newcomer to a major player in the industry. Our advanced core systems will ensure that MCX can offer reliable, scalable, and innovative mobile services from day one”.

As the telecom industry in Nigeria undergoes transformative changes, this collaboration signals a promising future for mobile connectivity and digital adoption in the country.

This charge was made at the Mobile Virtual Network Operators (MVNOs) Conference organised by Wireless Technology Labs (WTL) themed “Profitable Paths: Charting the Future of MVNOs in Nigeria” held in Lagos, Nigeria.

Satya Mekala, the chief executive officer, Wireless Technology Labs, has  charged MVNOs in Nigeria to deploy Value Added Services (VAS) for the sustainability and profitability of their business operations in Nigeria’s ICT sector.

According to Mekala, MVNOs will bring innovation to a country a lot more than a mobile operator or anything. MVNOs have the advantage of offering services in several areas of the economy, including education, agriculture, and rural development, among others.

In his words,

“Mobile operators are very rich, and they’re already making lots of money. It’s an unnecessary waste of time for MVNOs to compete with them. There are innovations that are not happening with mobile operators.”

Mekala also stressed that collaborative efforts among MVNOs enabled them to pool expertise, tackle challenges collectively, build profitable ventures, and deliver essential value-added services crucial for the populace and the nation

In his presentation, the Himmat Gill, Vice President of TecnoTree quoted that the global MVNO market size was worth $84.6 billion in 2023, and it is expected to grow at a compound annual growth rate of 6.7% to reach $116.8 billion by 2028. He also noted that the MVNO market is 50% distributed in Europe, 15% in APAC, 15% in the USA , and it is only 2% in Africa.

Speaking on some of the challenges, Gill said fierce competition in an oversaturated market, limited control over network quality and service prioritisation, and navigating through diverse regulatory landscape across regions may impend MVNO success.

However, market differentiation serves as a potential strategy for MVNOs to overcome these challenges, he said. Stressing that, for MVNOs to attract and retain customers, the need to distinguish themselves from competitors  can not be overemphasized.

Market differentiation, according to him, involves innovative service offerings, targeted niche markets, enhanced customer experience, and strategic partnerships.

In the same vein, Andriy Zhylenko, PortaOne chief executive fficer, tasked Nigerian MVNOs to identify their target audience, design niche-tailored VAS packages, and pick solution component that provides maximum freedom for in-house innovation.

Echoing Satya’s words, he urged MVNOs not to sell phone calls. Rather, they should offer solutions for growth and harvest IOT matket growth.

Nigerian MVNOs need to bundle third- party services while offering better CX and face fewer administration hardaches with low-code integrations,

On his part, Rune Holbeck, Nordic eSIM Chief Executive Officer, urged MVNOs to embrace and leverage eSIM technology in order to meet customers’ demand for flexibility, seamless connectivity, and digital solutions.

While stating that the rising adoption of IOT-connected devices and customer electronics is driving eSIM market expansion, Holbeck noted that eSIM technology positions MVNOs to stand out in Nigeria’s crowded telecom sector by offering innovation, digital-first services.

As part of the competitive advantage in the Nigerian market, the Nordic eSIM Boss said the adoption of eSIM technology by MVNOs will promote its rapid market entry, enhanced security features and helped target niche segments.

“With eSIM, MVNOs can launch new services faster, without the logistical challenges of distributing physical SIM cards. eSIM provides superior security compared to traditional SIMs, appealing to privacy-conscious customers and enterprises, “Holbeck said.

As a solution portfolio company, LATRO’s Director of Solution Architecture, Elmehdi Erroussafi, said operators need to be protected from various types of frauds, including bypass fraud, using advanced detection and prevention system.

Offering its innovative managed services, LATRO said its revenue assurance for MVNOs is designed to be flexible enough to add any specific need that operators might need based on the market environment. Erroussafi also said that for MVNOs operations to be a success,  they need a comprehensive framework for detecting revenue leakages.

The MVNO Conference which saw the participation of Chief Executive Officers and Chief Technical Officers of MVNOs in Nigeria, Internet Sevice Providers and industry stakeholders enjoyed the partnership of Tecnotree, MVNOWorx, Nordic eSIM, PortaOne, and LATRO.