Nigeria will go from having four mobile providers − MTN, Globacom, Airtel and 9Mobile − to nearly 30 in a few months, a milestone that will transform the country’s telco market.
This comes after the Nigeria Communications Commission (NCC) recently awarded 25 mobile virtual network operator (MVNO) licences.
As a licensing fee, the 25 corporations paid the government a total of $7.7 million to the regulator NCC.
MVNOs are expected to provide competitive alternatives in the telecoms industry, reduce subscribers’ phone and data expenses, and improve rural connectivity.
According to JSC Ingenium, a telecoms engineering company based in Spain, the shift provides Nigeria with a unique chance for the entry of new and creative services, as well as new-value mobile offers.
JSC Ingenium focuses on the development of infrastructure and network services for mobile operators.
It says the overwhelming response to the NCC’s sale of new MVNO licences has been more than positive, and it can be viewed as a success story that places Nigeria as one of the continent’s key economic powerhouses.
The NCC’s strategy is to increase competition in the mobile sector and help bring mobile telecoms services to the country’s rural, remote and underserved areas.
The continent’s most populous country has over 226 million mobile lines, but only 60% of the population has access to mobile internet, while just 4% of the population has access to 4G.
JSC Ingenium says it is in this scenario, undoubtedly, where MVNOs make the most sense as drivers of the mobile market.
The new MVNOs are finalising their mobile business plans and will soon be launching, aiming to deliver services on 4G and 5G, while also dealing with legacy network disruption.
“MVNOs will help boost the country’s economy and reduce the digital divide by bringing connectivity and mobile services to all segments and all corners of the country, creating jobs − directly and indirectly − and democratising technology with new offers and competitive prices,” says Juan Carlos Buitrago, chief sales officer of JSC Ingenium.
“Their success will depend on having a differentiating mobile business strategy, with a flexible commercial model and state-of-the-art technology that allows them to distinguish themselves in terms of value and compete on equal terms with other players in the sector.”