TSSF 2025: NCC urges MVNOs to invest for sustainable benefits in telecoms ecosystem

*Dr. Aminu Maida, Executive Vice-Chairman and CEO, Nigerian Communications Commission, urges the Mobile Virtual Network Operators to recognise the viability of the country’s market, invest boldly, and position themselves for long-term benefits in the telecoms space

Gbenga Kayode | ConsumerConnect

The Nigerian Communications Commission (NCC) has advised the Mobile Virtual Network Operators, and relevant stakeholders in the communications industry to recognise the viability of the Nigerian market, invest boldly, and position themselves to reap the long-term benefits of their investments in the space.

ConsumerConnect reports Dr. Aminu Maida, Executive Vice-Chairman and Chief Executive Officer (EVC/CEO) of NCC, noted this in his keynote address at the 6th Edition of the Telecoms Sector Sustainability Forum (TSSF), held in Lagos recently.

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Business Remarks organised the TSSF, which attracted key stakeholders with the theme: “Unlocking Nigeria’s MVNO Potential: Status, Trends, Investment, and Future Prospects”.

Dr. Maida, represented at the event by Mr. Usman Mamman, Director of Licensing and Authorisation at NCC, said the entrance of MVNOs is expected to provide competitive niche offerings, and enhance digital communications ecosystem for the benefit of telecoms consumers, and the entire Nigerian economy.

The EVC/CEO of the telecoms sector regulatory Commission also noted that there are now over 1,000 MVNOs globally.

He said there are 500 of them operating in Europe alone, while the NCC issued 46 MVNO Licences 2023.

Maida, in his address to the stakeholders on the occasion, also said the Commission was aware of   the challenges the MVNOs are faced in Nigeria, particularly in relation to commercial negotiations.

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The NCC Chief assured the industry stakeholders that the Commission is working with Mobile Network Operators (MNOs) towards improve network capacity, Quality of Service (QoS) and consumer experience in Nigeria.

The EVC/CEO, therefore, asked the MNOs to partner with the MVNOs to attain new verticals, drive margin growth, and monetise spare capacity in the Nigerian telecoms environment.

The event was a decisive call for collaboration, strategic market positioning, and patient capital by key players in the country’s telecoms sector to unlock the dormant potential of Mobile Virtual Network Operators.

The organisers and industry stakeholders as well agreed that the TSSF, which attracted major Mobile Network Operators, the NCC, and licensed MVNOs, served as a veritable platform to diagnose the critical challenges impeding the growth of the MVNO sub-sector in the telecommunications space.

The Forum further emphasised that the sustainability of MVNOs in  the country is a collective responsibility.

The TSSF also solicited collaboration between MNOs, the NCC, and the MVNOs to replicate the success stories obtainable in other economies around the world.

This, they said, would help to promote a more diverse, competitive, and inclusive telecommunications market for all Nigerians.

MVNOs largely dependent on regulatory enforcement, spectrum access –Convener

Earlier in her welcome address to the Forum, Bukola Olanrewaju, Managing Editor of Business Remarks and Convener of TSSF, had stated that the Nigerian telecoms market is growing at an incredible pace.

Olanrewaju noted the level of success recorded in each country with MVNOs is largely dependent on the regulatory enforcement and interventions, wholesale agreement, spectrum access, and on how effectively MVNOs players could navigate the identified hurdles.

She also said: “To succeed, Nigeria must collectively build an ecosystem that is both competitive and sustainable.”

Olanrewaju further highlighted the MVNOs operations in South Africa, Thailand and Argentina.

According to the Convener, TSSF 6.0. stressed the sustainability of MVNOs in Nigeria is a collective responsibility.

She stated that the sub-sector required unwavering collaboration between MNOs, the NCC, and MVNOs for them to replicate the success stories obtainable in other economies.

This, ultimately, will foster a more diverse, competitive, and inclusive telecommunications market for all Nigerians, she added.

ATCON President: MVNOs should carve unique niche for Nigerian market

Earlier in his speech at the Forum, Mr. Tony Izuagbe Emoekpere, President of Association of the Telecommunications Companies of Nigeria (ATCON), however, advised the MVNO licensees to not blindly adopt foreign MVNOs model for Nigerian local market and telecoms consumers.

Emoekpere urged the sector players to conduct a diligent market analysis, and focus on service differentiation through specialised offerings to consumers.

He also stated: “MVNOs need to carve a unique niche specially designed for the Nigerian market.”

Also speaking on the need for the players to carve a unique niche for their brands, Dr. Tola Yusuf, Co-founder and Executive Director of Infratel Africa, stressed that MVNOs in Nigeria’s market must adopt a more strategic approach to succeed in rural and underserved areas.

Categorically noting that there are immense potential in connecting these rural communities, Dr. Yusuf contended that MVNOs often focus on urban, high-density areas like Lagos, while neglecting the vast majority of the population, estimated at over 25 million people who remain completely unconnected in the hinterland.

He also said: “The true winners in the MVNO space will be those who develop a clear strategy to serve these markets, even if it requires significant logistical effort, such as using horses or boats to reach remote communities.”

The Co-founder and Executive Director of Infratel Africa, as well suggested that the current market might see future mergers and acquisitions, with some licence holders potentially selling their licences as they fail to compete effectively.

Citing examples of banks with MVNOs licences in other countries, Mr. Usman Mamman, Director of Licensing and Authorisation at NCC, during the panel session drew attention to how banks and other financial institutions have successfully entered the telecoms space.

This, Mamman stated, has enabled them to understand customers’ needs and tailoring holistic lifestyle services accordingly.

Addressing the need to focus on providing niche services to specific customer groups, Mamman noted that unlike large mobile network operators, MVNOs are expected to be digital-first and flexible, which enables them to be innovative and quickly capitalise on underserved market segments of the telecoms market in Nigeria.

In his contribution, Dr. Chidi Ajuzie, Director of USK Mobile, noted the capacity constraints of the host MNOs and the revenue-sharing model that could limit profitability.

Dr. Ajuzie said: “Tier 5 MVNOs are expected to build their own core infrastructure and billing systems (BSS/OSS), but they still rely on the MNO’s radio access network. This creates a bottleneck.

“Even if a Tier 5 MVNO has excellent billing systems, it can’t offer unlimited data or guaranteed high speeds if the MNO’s network is already at capacity.”

He, however, observed that some higher-tier are now exploring innovative approaches to overcome the identified constraint by securing additional licences, including Internet Service Provider (ISP) or Public Licence (PL) licences.

The Director of USK Mobile stressed the need for a significant expansion of the existing infrastructure, particularly by MVNOs who are now integrating their own fixed infrastructure, including fiber networks.

According to him, this expansion is the only way to “expand the pipe” and create a truly competitive and viable market for all players in the ecosystem.

Speaking during the panel discussion, Mr. Olusola Teniola, Director of Startegic Business Initiative at ipNX, averred that Nigeria’s 40,000 telecoms towers are grossly insufficient for a population of over 200 million, especially compared to the United Kingdom’s (UK) 75,000 towers for a much smaller population.

Eniola stated that unlike developed economies where public funds initially built a robust telecoms backbone, Nigeria’s infrastructure was financed by a few dominant Mobile Network Operators, who have invested billions in the market.

The expert also observed that the challenge of inadequate infrastructure, particularly outside major cities, such as Lagos, Abuja, and Port Harcourt, presents a major challenge for new MVNOs.

These MVNOs are intended to serve the millions of unconnected Nigerian consumers, particularly in rural areas, stated he.

Teniola emphasised that without substantial new investment to expand the network, the MVNO business model would struggle to succeed, with only those that could survive a long-term, 7-to-10-year investment cycle likely to see returns on investment (ROI).

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