NCC SUSPENDS ISSUANCE OF VIRTUAL OPERATORS LICENCE, TWO OTHERS
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The interim suspension of new license issuing to operators in three categories has been issued by the Nigerian Communication Commission.
Licences for Mobile Virtual Network Operators, Interconnect Exchangers, and Value-Added Service Aggregators are the categories.
A virtual operator is a business that uses the network of a licensed mobile operator to offer mobile services under its own brand name even if it does not possess a license to use mobile spectrum. There are at least 25 operators at the moment.
A network feature known as the Interconnect Exchange License makes it possible for more than two separate connected entities to link with one another in order to expedite the flow of electronic communications.
VAS aggregators are telecommunication services that extend beyond ordinary phone calls and are considered non-core network services.
Internet, directory assistance, paging services, voice mail, prepaid calling card services, call center services, content services, and vehicle tracking are some of these services.
The NCC said the suspension is in line with its powers under the Nigerian Communications Act 2003 to grant, renew licenses and promote fair competition.
The commission, in a public notice posted on its X handle on Friday, said the temporary suspension is to enable a thorough review of several key areas of market saturation, competition level and current market dynamics.
The notice titled, “Temporary Suspension Of The Issuance Of Communications Licences In Three Categories” was signed by the Director, Public Affairs Department, Nigerian Communications Commission, Reuben Muoka.
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.”
It, however, 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.
In recent times, the telecommunications sector has been faced with a myriad of issues raising concerns about sustainability and efficient service delivery amid ongoing economic challenges.
Record high inflation has reduced purchasing power and a currency devaluation has cut margins.
These challenges are exacerbated by the issue of multiple taxation and regulations and prohibitive right-of-way charges, inadequate electric power supply, and vandalism of telecommunications infrastructure.
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