NCC Halts Issuance of Virtual Operator Licenses and Two Other Licenses

The Nigerian Communications Commission (NCC) has temporarily suspended the issuance of new licenses in three categories: Mobile Virtual Network Operator Licence, Interconnect Exchange Licence, and Value Added Service Aggregator Licence.

According to the NCC, this suspension aligns with its authority under the Nigerian Communications Act 2003 to grant and renew licenses and promote fair competition. The suspension does not affect pending applications, which will still be considered based on merit.

A Mobile Virtual Network Operator Licence allows companies without a mobile spectrum license to sell mobile services using the network of a licensed mobile operator. The Interconnect Exchange Licence facilitates the connection of more than two independent entities for electronic communications transfer. Value Added Service Aggregators offer non-core network telecommunication services, such as internet, directory services, paging, voicemail, prepaid calling cards, call centers, content services, and vehicle tracking.

In a public notice posted on its X handle on Friday, the NCC announced that the temporary suspension aims to allow a thorough review of market saturation, competition levels, and current market dynamics. The notice, signed by Reuben Muoka, Director of the Public Affairs Department, stated:

“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 Commission) hereby informs all stakeholders of a temporary suspension on 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 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,” the statement read.

The public is informed that from May 17, 2024, new applications for these licenses will not be accepted. However, pending applications will be considered on their merits.

For any inquiries or clarifications regarding this Suspension Notice, contact licensing@ncc.gov.ng.