News
NCC Halts License Issuance To Virtual Operators, Others
The Nigerian Communication Commission (NCC) has recently announced the temporary suspension of new license issuance to operators in three specific categories.
These categories include the Mobile Virtual Network Operator License, Interconnect Exchange License, and Value Added Service Aggregator License.
A Mobile Virtual Network Operator is a company that does not possess its own mobile spectrum license but instead offers mobile services under its own brand name by utilizing the network of a licensed mobile operator. Currently, at least 25 operators function in this capacity.
The Interconnect Exchange License pertains to a network facility that allows for the interconnection of multiple independent connecting entities, facilitating the transfer of electronic communications.
On the other hand, Value-Added Service Aggregates are non-core network telecommunication services that go beyond standard voice calls. These services encompass internet access, directory services, paging services, voice mail and prepaid calling card services, call center services, content services, and vehicle tracking.
The NCC has stated that this suspension aligns with its authority under the Nigerian Communications Act of 2003, which grants the commission the power to issue and renew licenses, as well as promote fair competition within the industry.
In a public notice released on Friday via its official X handle, the commission explained that this temporary suspension is necessary to conduct a comprehensive review of various critical aspects such as market saturation, competition levels, and current market dynamics.
The notice, titled “Temporary Suspension Of The Issuance Of Communications Licenses In Three Categories,” was signed by Reuben Muoka, the Director of the Public Affairs Department at the Nigerian Communications Commission.
The notice read, “In line with its powers under the Nigerian Communications Act 2003 to grant and renew licenses, promote fair competition and develop the Communications Industry, the Nigerian Communications Commission (The Commissions) hereby informs all stakeholders of a temporary suspension on issuance of new licenses in the following categories, Interconnect Exchange License, Mobile Virtual Network Operator License and Value Added Service Aggregator License.
“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.”
However, it noted that the new directive doesn’t affect pending applications, which would be considered based on merit.
“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.
“Any enquiries of clarification in respect of this Suspension Notice should be forwarded to: licensing@ncc.gov.ng,” the statement read.
Lately, the telecommunications industry has encountered numerous challenges that have sparked worries about sustainability and effective service provision in the midst of persistent economic difficulties.
The surge in inflation has diminished buying power, while currency devaluation has squeezed profit margins.
These obstacles are further compounded by the burden of multiple taxes and regulations, high right-of-way charges, insufficient electricity supply, and the vandalism of telecommunications infrastructure.
