September 16, (THEWILL) – The recent suspension of operational licences to communication companies in three categories – Mobile Virtual Network Operator (MVNO), Interconnect Exchange and Value Added Service Aggregator – by the industry regulator, Nigerian Communications Commission (NCC), comes with a pinch of salt.
The suspension, though temporary, according to the Director of Public Affairs at NCC, Reuben Muoka, is really something to worry about as it is coming at a time Nigerians were expecting the roll-out of the much-anticipated MVNOs after many of them were licenced last year.
THEWILL recalls that towards the end of last year, about 25 MVNO licences were awarded, thus raising the hope of a unique opportunity for the entry of new and innovative services and new value mobile offerings into the country.
The overwhelming response to the NCC’s offer of new MVNO licences had been more than positive and had been considered a success story capable of positioning the country as one of the major economic powerhouses on the African continent.
However, while the number of MVNO licences awarded so far has risen to about 43, it is really worrisome that none of these MVNOs has started operations, thereby depriving millions of Nigerians of the much-anticipated benefits.
With more than 226 million mobile lines already, representing just over 100 percent mobile penetration in the country, barely 60 percent of the Nigerian population has access to mobile Internet and only 4 percent of the population has access to 4G.
This, exactly, is where the MVNOs are expected to make the most sense as drivers of the mobile market.
More worrisome is the fact that almost a year after the exercise commenced, the frenzy and hope of the country going from having four mobile operators – MTN, Globacom, Airtel and 9Mobile – to over 40 new ones, a milestone expected to revolutionise the country’s telco sector – are almost becoming an illusion, thus defeating the purpose of the entire exercise.
Now, the strategy, which is aimed at boosting competition in the mobile sector by bringing mobile telecommunications services to rural, remote and underserved areas of the country, is about to be punctured even before its take-off.
While we agree with NCC that the suspension became necessary to enable the Commission conduct a thorough review of several key areas within these categories, including the current level of competition, market saturation and current market dynamics, we urge the Commission to use the period of the suspension to fast track the process for the roll-out of the MVNOs to enable Nigerians enjoy the immense opportunities therein.
The immediate roll-out of the MVNOs therefore becomes necessary now to break the monopoly of the four big networks which are even considering a hike in their tariffs at a time of economic hardship in the country. Without any doubt, we sincerely believe that NCC really has a big role to play in ensuring the smooth integration of the MVNOs into the Nigerian telco market and the time to do so is now.
