NCC suspends the issuance of a virtual operator license, two others

The Nigerian Communications Commission has announced a temporary suspension of the issuance of new licenses to operators in three categories.

The categories are Mobile Virtual Network Operator License, Interconnect Exchange License and Value Added Service Aggregator License.

A virtual operator is a company that does not hold a cellular license, but sells cellular services under its brand name over the network of a licensed cellular operator. There are currently at least 25 operators.

The Interconnect Exchange License is a network facility that allows the interconnection of more than two independent interconnection devices to facilitate the transmission of electronic communications.

While VAS aggregators are non-core telecommunications services that go beyond standard voice calls.

These services include Internet, directory services, paging services, voicemail and prepaid calling card services, call center services, content services and vehicle tracking.

The NCC said the suspension was in line with its powers under the Nigerian Communications Act 2003 to grant, renew licenses and promote fair competition.

In a public notice posted on its

The notice titled “Temporary Suspension of Issuance of Communications Licenses in Three Categories” was signed by the Director, Public Affairs Department of the Nigerian Communications Commission, Reuben Muoka.

The notice said: “In accordance 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(s) hereby informs all concerned of a temporary Suspension of the 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 allow the Commission to conduct a thorough review of several key areas within these categories, including current levels of competition, market saturation and current market dynamics.”

However, it noted that the new policy has no impact on pending applications, which will be examined on the merits.

“The public is requested to note that no new applications for the above licenses will be accepted during the suspension period, which begins on May 17, 2024. This is without prejudice to pending applications before the Commission, which will be examined on their merits.

“All requests for clarification on this suspension notice should be forwarded to [email protected],” the statement said.

Recently, the telecommunications sector has faced a variety of issues, raising concerns about sustainability and efficient service delivery amid ongoing economic challenges.

Record high inflation has reduced purchasing power and currency devaluation has reduced margins.

These challenges are compounded by the problem of multiple taxes and regulations as well as prohibitive right-of-way fees, inadequate electricity supply and vandalism of telecommunications infrastructure.