Stakeholders Outline Strategic Roadmap for Nigeria’s Mobile Virtual Network Operators
Key players in Nigeria’s telecommunications industry have jointly called for enhanced collaboration, strategic market positioning, and patient investment to unlock the full potential of Mobile Virtual Network Operators (MVNOs). This consensus emerged during the sixth edition of the Telecoms Sector Sustainability Forum (TSSF), hosted by Business Remarks in Ikeja, Lagos, under the theme: Unlocking Nigeria’s MVNO Potential: Status, Trends, Investment, and Future Prospects.
The forum brought together major mobile network operators (MNOs), the Nigerian Communications Commission (NCC), and licensed MVNOs. It served as a candid platform to identify and address the key challenges hindering MVNO sector growth. Participants emphasized that ensuring the sustainability of MVNOs requires collective effort and collaboration among all stakeholders, with the goal of replicating successful international models to foster a more diverse, competitive, and inclusive telecom landscape in Nigeria.
In his keynote, NCC Executive Vice Chairman Dr. Aminu Maida highlighted that introducing MVNOs would create competitive niches and bolster Nigeria’s digital ecosystem, ultimately benefiting consumers and the country’s economy. He noted that over 1,000 MVNOs operate globally, with more than 500 in Europe, and disclosed that Nigeria issued 46 MVNO licenses in 2023.
Maida acknowledged the hurdles faced by Nigerian MVNOs, particularly around commercial negotiations, and assured that the NCC is actively working with MNOs to enhance network capacity. He urged MNOs to partner with MVNOs to explore new market verticals, grow margins, and monetize spare capacity. Meanwhile, MVNOs were encouraged to recognize Nigeria’s market viability, invest boldly, and position themselves for long-term gains.
ATCON President Mr. Tony Izuagbe Emoekpere advised MVNO licensees against blindly mimicking foreign models. Instead, he urged them to conduct diligent market research and develop service offerings tailored specifically for Nigerian consumers, emphasizing the importance of service differentiation.
Dr. Tola Yusuf, Co-founder of Infratel Africa, called for a strategic focus on underserved rural areas, which account for over 25 million Nigerians still unconnected. He emphasized that success in these markets would require innovative logistical solutions and warned of potential future mergers or license sales among license holders unable to compete effectively.
During a panel discussion, NCC’s Mr. Usman Mamman pointed to how financial institutions in other countries have successfully entered telecoms by understanding customer needs and offering holistic lifestyle services. He highlighted that MVNOs, especially those digital-first and flexible, can quickly target underserved segments.
However, capacity constraints and revenue-sharing models were identified as challenges. Dr. Chidi Ajuzie of ipNX explained that Tier 5 MVNOs, which build their own core infrastructure, still depend on MNO networks, creating bottlenecks in data speeds and capacity. He noted that some higher-tier MVNOs are seeking licenses as Internet Service Providers (ISPs) or Public License holders to bypass these constraints and expand infrastructure, such as fiber networks, to foster a more competitive environment.
Mr. Olusola Teniola of ipNX highlighted Nigeria’s insufficient telecom tower infrastructure—about 40,000 towers for over 200 million people—compared to countries like the UK, which has 75,000 towers for a smaller population. He pointed out that the lack of widespread infrastructure outside major cities hampers MVNOs’ efforts to serve rural communities. Teniola stressed that substantial investment in infrastructure is essential for MVNOs to succeed, especially over the long term.
In her opening remarks, Bukola Olanrewaju, Convener and Managing Editor of Business Remarks, underscored that Nigeria’s telecom growth hinges on effective regulation, wholesale agreements, spectrum access, and navigating operational hurdles. She cited successful MVNO models from South Africa, Thailand, and Argentina, emphasizing that building a sustainable ecosystem requires collective effort.
The forum concluded that Nigeria must foster collaboration among MNOs, the NCC, and MVNOs to unlock the sector’s potential, replicating international success stories and creating a more diverse, competitive, and inclusive telecommunications landscape for all Nigerians.