NCC stops granting virtual operators’ licenses, along with two additional licenses

The Nigerian Communication Commission (NCC) made an announcement on May 17th, stating that they have temporarily suspended three types of licenses issued to various operators in the industry.

These licenses include the Mobile Virtual Network Operator License, Interconnect Exchange License, and Value Added Service Aggregator License.

A virtual operator is a company that sells mobile services under its own brand name, without owning a mobile spectrum license, and instead utilizes the network of a licensed mobile operator. Currently, there are at least 25 virtual operators in Nigeria.

The Interconnect Exchange License is a network facility that allows for the interconnection of multiple independent entities to facilitate the transfer of electronic communications.

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On the other hand, Value Added Service Aggregators provide non-core network telecommunication services such as internet, directory service, paging service, voice mail, prepaid calling card service, call center services, content services, and vehicle tracking.

The Director of Public Affairs at the NCC, Reuben Muoka, explained that the temporary suspension is in line with the NCC’s powers under the Nigerian Communications Act 2003, which allows them to grant, renew licenses, and promote fair competition.

The purpose of the suspension is to conduct a comprehensive review of market saturation, competition levels, and current market dynamics in order to make informed decisions moving forward.