The Nigerian Communications Commission has licensed 25 Mobile Virtual Network Operator (MVNO), as part of the efforts to improve and strengthen its telecom industry.
An MVNO is a telecommunications service provider that utilises the capacity of fully-licensed telecom service or mobile network operators.
Through reseller agreements, these licences allow them to offer mobile services.
The entrance of MNVOs is predicted to encourage competition between the providers, resulting in lower costs for subscribers.
To deliver its services, an MVNO negotiates a form of wholesale or revenue sharing agreement with the telecommunications company and purchases resources in bulk.
Regardless of its operational model, the defining difference between an MVNO and an MNO is that the former has no ownership of spectrum elements.
NCC also stated that companies will be able to sell repackaged voice, SMS, MMS, and data services under their brands once they have been acquired from the country’s three major operators.
The introduction of a Mobile Virtual Network Operator (MVNO) licence is one of the numerous milestones embarked upon by NCC to bridge the gap between unserved and underserved areas of the country.
The Executive Vice Chairman of the Commission, Prof. Umar Danbatta said each of the license categories has a long duration of 10 years validation tenure before renewal.
Speaking further, he stated the commission is currently restructuring all its licenses due to global technological advancement. This includes the terms of the license, scope, conditions, limitations, benchmark, and also pricing policies as some of these are already obsolete.
Speaking further, the commission noted the companies listed below are those that have paid their license fees in full and have collected their license documents for the respective telecommunications undertaking before the era of reclassification of Licences into Class and Individual Licences.
In MVNOs Licensees and Their Tiers, NCC noted the Mobile Virtual Network Operators, MVNOs license is a five (5) tier classification that has distinctive services to be offered by the players in different tiers. Business Remarks discovered no company was registered for the tier-1 category.
In MVNOs- Tier 2 Category, 7 companies were licensed in the tier 2 category. These include Routelink Integrated Systems Ltd; Hazon Technologies Limited; Asel Telecom Nigeria Limited; Briclinks Africa Plc; Pisi Mobile Services Limited; Univasa Nigeria Limited; and Imose Technologies Limited.
MVNOs- Tier 3 Category are also 7 in number.
They are Amics Technologies Limited; Zegtel Limited; Telewyz Limited; Siu Telecommunications Network; Abrindex Nigeria Limited; Metropolitan Consortium Nigeria Ltd; and IPNX Nigeria Limited.
MVNOs- Tier 4 Category are Companies licensed as tier 4 MVNO operators include Imbil Telecoms Solutions Nig. Ltd; Environmental Expressions Limited; and DMK Telecommunication Nig. Ltd.
In the MVNOs- Tier 5 Category, 8 companies were licensed. These include Systegra Technologies Limited; Choffan Communications Limited; Mab Consultant and Associates Ltd; H & Y Business Global Limited; Taima Technologies Ltd; Global Communication Extension Services Ltd; USKS Ventures International Ltd; and Paribas Communication Limited.
What Each Tier Stands for
Explaining the layers, NCC said Tier 1 operators are the Services Virtual Operators. This tier leverages its ability to offer services to its customers without owning any switching or intelligent network infrastructure. They do not control any numbering resources. Responsibilities lie with the host licensee to provide wholesale capacity to the V.O for delivery of its products and services.
Tier 2 is the Simple Facilities Virtual Operator, which assumes more control of the value chain, which allows it to significantly differentiate itself from its host. The VO does not have Core Switching and Interconnect capabilities but can set up its own Intelligent Network (IN) to provide its own IN services to the customer.
Tier 3 are Core Facilities Virtual Operators, which rely on its technical and commercial prowess to launch and operate a full core network with switching and interconnect capabilities.
Tier 4 are Virtual Aggregators/Enablers, responsible for aggregating and/or enabling VO services within the market. It relies on a model in which it stands as a middleman between the MNO and multiple VOs.
Tier 5 are Unified Virtual Operators. A VO within this tier can decide the level of service it desires to offer to range from tier–1 to tier–4. This gives the VO freedom of choice to deploy its services the way it deems fit as long as it still has a valid license.
Regulation and Sanction
According to NCC, the license is subject to revocation or suspension under the same conditions set within Condition 21 of the Unified Access Service license framework. The license can also be revoked or suspended if the licensee violates the MVNO agreement between itself and the MNO, or violates any of the conditions stated within this framework and the license can be revoked. If a licensee operates beyond the scope of the tier it has indicated and paid the license fees for.
