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By Chinenye Anuforo
The Nigerian Communications Commission (NCC) has announced a temporary suspension on issuing new licenses for three telecommunication service categories. This decision, effective May 17th, 2024, aims to allow the NCC to conduct a comprehensive review of the specific sectors.
In a press statement signed by Reuben Muoka, Director, Public Affairs, NCC, the Commission said the suspension applies to the following licenses:
Interconnect Exchange License: This license is required for companies that facilitate the exchange of telecommunication traffic between different networks.
Mobile Virtual Network Operator (MVNO) License: This license allows companies to offer mobile phone services without owning their own network infrastructure. They instead lease network capacity from existing mobile network operators (MNOs).
Value Added Service (VAS) Aggregator License: This license is required for companies that aggregate and deliver value-added services (VAS) over existing telecommunication networks. VAS can include mobile banking, caller tunes, and other data services.
The NCC explained that the suspension is necessary to assess the current level of competition, market saturation, and overall market dynamics within these three categories. The commission will use this review period to determine if adjustments are needed to ensure a healthy and competitive telecommunication landscape in Nigeria.
While new applications for the mentioned licenses will not be accepted during the suspension, the NCC clarified that pending applications will still be considered based on their individual merits.
This temporary suspension is likely to impact companies seeking to enter the Nigerian telecommunications market in these specific sectors. The NCC’s review is expected to provide valuable insights into the future direction of these license categories.
