The Nigeria Communications Commission, NCC has issued a license to Nigerian payment company, Interswitch to begin telecommunications services
The company in a statement said it will operate as a Mobile Virtual Network Operator, MNVO leveraging the existing infrastructure of other telecom firms.
Interswitch stated that its investigating the launch of a low-level capital expenditure virtual telecoms model with the license, combining with payments and telecoms services to B2B customers and consumers.
MNVO is a telecommunications service provider using the infrastructure and capacity of fully licensed mobile networks to deliver products and services.
The implication is that although licensed companies offer the same services as MTN, Airtel, Glo and 9Mobile, they need more infrastructure.
However, they rely on the infrastructure of existing telecom providers to deliver their services to their consumers.
Data from the NCC reveals that about 23 firms hold MNVO licenses to align with the objectives of the Nigeria National Broadband Plan (NNBP 2020-2025).
The development comes amid reports of FX losses by Africa’s leading telecom firm, MTN Nigeria.
The company recorded a foreign exchange loss of about N740 billion in its financial year 2023.
Mobile Virtual Network Operator (MVNO)
A Mobile Virtual Network Operator (MVNO) is a company that does not own a mobile spectrum license but sells mobile services under its brand name using the network of a licensed mobile operator.
The term is applied to a variety of arrangements with a mobile network operator. At one end are companies offering mobile services under a particular brand, with their own marketing and tariff structure, usually through a sophisticated CRM system.
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At the other end are companies with their own core network infrastructures, issuing their own SIM cards and controlling elements of network infrastructure such as the HLR and MSC, in addition to their own products.
