CEM REPORT | The Nigerian Communications Commission (NCC) has set the licensing fees for Mobile Virtual Network Operators (MVNO) between N30 million and N250 million, depending on the type of tier.
This is contained in the ‘License Framework for the Establishment of Mobile Virtual Network Operators in Nigeria’, released by the commission on Tuesday,
According to the document, Tier 1 operator pays N30 million; Tier 2 operator N65 million; Tier 3 operator N100 million; Tier 4 N150 million and Tier 5 N250 million. The tenure for the license is pegged at 10 years with an option to renew the license for the same term.
NCC defines MVNO as a telecommunications product and service operator that rides on top of the capacity of a fully Licenced Mobile Telecommunications Service provider or Mobile Network Operator (MNO).
The MVNO reaches a “Wholesale Agreement” or “Revenue Sharing Agreement” with the Telecommunications Company (Telco) through negotiations, and delivers its services after bulk purchasing resources from the Telco. The defining difference between an MVNO and an MNO is the simple fact that an MVNO has no ownership whatsoever of spectrum elements, irrespective of its operational model.
NCC said that this licensing fee structure was developed after a careful analysis and reporting of findings obtained from desktop research into other jurisdictions and the regulatory approach utilized in licensing MVNOs within their respective regions.
The Commission said literature reviews of past and present surveys of the Nigerian market, along with current regulatory documents were conducted to ascertain the readiness of the Nigerian telecommunications market for Mobile Virtual network Operators
One of the major objectives of MVNO is to give the service providers of virtual mobile communications service an opportunity to participate in the telecommunications provisioning market of Nigeria, with an emphasis on improving the telecommunication output of the country.
In terms of the roll-out, the licensee must ensure that its services are rolled out within 12 months of obtaining its license and is expected to stick to the terms of the agreement as stated in its business proposal and service delivery within the MVNO agreement with MNO.
According to NCC, the License is subject to revocation or suspension under the same conditions set within Condition 21 of the Unified Access Service license framework. The license can also be revoked or suspended if the licensee violates the MVNO agreement between itself and the MNO, or violates any of the conditions stated within this framework and the license can be revoked. If a licensee operates beyond the scope of the tier it has indicated and paid the license fees for.
Download the full document here