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  • Updated: August 09, 2023

IT Specialist Praises NCC's MVNO Licensing For Nigerian Telecommunication

IT Specialist Praises NCC's MVNO Licensing For Nigerian Tele

Andriy Zhylenko, an IT specialist, has said that the Nigerian Communications Commission's (NCC) new licencing framework for Mobile Virtual Network Operators (MVNOs) will attract more investments to the nation's telecom industry and increase Nigerians' access to connectivity.  

Zhylenko, the CEO of the software startup PortaOne, claimed that the licence will allow businesses to provide superior connection platforms and hardware solutions for neglected distant regions. 

According to him, MVNOs have long played a significant role in the global telecommunications sector. Virgin Mobile UK introduced the first MVNO model in 1999.

According to him, the Nigerian experience may also serve as a catalyst for the next generation of communications technologies, defining the direction of the sector in the rest of Africa and possibly in all rising nations. 

Zhylenko stated that many of these MVNOs would eventually be in direct rivalry with one another due to the licencing framework's five tiers:  

“The new licensing framework will create a unique competitive environment that will help industry analysts better assess the most effective in the modern age of mobile communications, Internet of Things, and Artificial Intelligence.” 

He continued by saying that the framework offers a special chance to observe how various technologies would function in terms of granting access to more sophisticated and reasonably priced communications services. 

Zhylenko observed that when more MVNOs entered the market, it would spur significant innovation in e-commerce, electric vehicle charging stations, and voice and messaging plans for mobile phone users. 

To offer mobile telecommunications services under the Mobile Virtual Network Operator (MVNO) framework, the NCC had granted licences to 25 new businesses.  

Even though they will be using the same infrastructure put in place by the previous operators, the companies will offer the same services as MTN, Globacom, Airtel, and 9mobile.

The entry of the MNVO is anticipated to offer competitive telecom services and bring down subscriber call and data expenses.  

The government's attempts to expand telecom services to more rural, underserved, and unserved communities around the nation would be aided by the MVNOs, according to NCC, in addition to lowering the cost of access to telecommunications services. 

Industry experts claim that by purchasing network capacity from Mobile Network Operators (MNOs), MVNOs can quickly gain market share by implementing a business plan that transfers these savings to the customer.

In contrast to MNOs, which often offer more of a generic service that caters to the people, MVNOs can also provide a more personalised service, they continued. 

A mobile virtual network operator (MVNO) is a company that offers telecom products and services while utilising the infrastructure of a mobile network operator (MNO) with a valid mobile telecom service provider licence.

This implies that the operators will be able to offer services without investing in new infrastructure by utilising those already in place throughout the nation. 

The global MVNO market is expected to grow from $67.54 billion in 2020 to $123.40 billion in 2028, at a CAGR of 7.9% over the forecast period of 2021–2028, according to Fortune Business Insights. 

943 MVNOs and 255 MNO sub-brands were operational as of June 2014.

This is an increase from 1,036 in 2012 and represents a total of over 1,200 mobile service providers hosted by MNOs globally. 

As a result, GSMA Intelligence reported that the number of MVNOs globally expanded by 70% between June 2010 and June 2015, reaching 1,017 in June 2015.

Around 2.46% of the world's 8.9 billion mobile connections were served by 1,300 active MVNOs as of December 2018, which accounted for more than 220 million mobile connections across 79 countries.  

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