A decisive call for a paradigm shift in strategy, investment, and collaboration has been issued to unlock the untapped potential of Mobile Virtual Network Operators (MVNOs) in Nigeria.
At the sixth edition of the Telecoms Sector Sustainability Forum (TSSF), stakeholders from across the telecommunications industry converged to diagnose the critical challenges stifling the growth of MVNOs and chart a path forward for a more competitive and inclusive digital ecosystem.
The forum, themed "Unlocking Nigeria's MVNO Potential: Status, Trends, Investment, and Future Prospects," brought together major mobile network operators (MNOs), the Nigerian Communications Commission (NCC), and newly licensed MVNOs.
The consensus was clear: the sustainability of this sub-sector is a collective responsibility, requiring unwavering collaboration to replicate the success stories seen in other nations and ultimately benefit all Nigerians.
In a keynote address delivered by the Director of Licensing and Authorisation, Mr Usman Mamman, on behalf of the NCC's Executive Vice Chairman, Dr Aminu Maida, the regulator's commitment was affirmed.
Maida stated that the entry of MVNOs is a strategic move designed to "provide competitive niche offerings as well as enhance the digital communications ecosystem in Nigeria."
He noted the global proliferation of MVNOs, with over 1,000 worldwide and 46 licences issued in Nigeria in 2023 alone, underscoring the market's readiness for this new wave of players.
Acknowledging the hurdles, particularly in commercial negotiations between MVNOs and their host MNOs, Dr Maida pledged the NCC's continued efforts to improve network capacity.
He urged MNOs to embrace partnership with MVNOs, viewing them not as competitors but as a means to "target new verticals, drive margin growth, and monetise spare capacity."
For the MVNOs themselves, the message was to recognise the immense viability of the Nigerian market, invest boldly, and position themselves for long-term success.
The forum served as a reality check for the 46 new licence holders, urging them to abandon a "copy-and-paste" approach from foreign markets.
Mr Tony Izuagbe Emoekpere, President of the Association of Telecommunications Companies of Nigeria (ATCON), advised MVNOs to conduct diligent market analysis and focus on service differentiation.
"MVNOs need to carve a unique niche specially designed for the Nigerian market," he emphasised.
This sentiment was echoed by Dr Tola Yusuf, co-founder and executive director of Infratel Africa, who highlighted the immense and often-neglected opportunity in rural and underserved areas.
He pointed out that while many MVNOs will naturally gravitate toward high-density urban centres like Lagos, the true winners will be those who develop a clear strategy to connect the estimated 25 million people in remote communities who remain completely unconnected.
Dr Yusuf painted a vivid picture of the logistical challenges, suggesting that success might even require unconventional methods like using horses or boats to reach remote communities, and warned that the market could see future mergers and acquisitions as less-prepared players fail to compete.
A significant portion of the discussion focused on Nigeria's glaring infrastructure gap.
Dr Chidi Ajuzie, Director of USK Mobile, highlighted the capacity constraints imposed by host MNOs, which can limit profitability for MVNOs, particularly for Tier 5 operators who build their own core infrastructure but still rely on the MNO's radio access network.
"Even if a Tier 5 MVNO has excellent billing systems, it can't offer unlimited data or guaranteed high speeds if the MNO's network is already at capacity," he explained.
To overcome this, Dr Ajuzie suggested that higher-tier MVNOs are exploring innovative solutions, such as acquiring additional licences like Internet Service Provider (ISP) or Public Licence (PL) licences, and integrating their own fixed infrastructure, like fibre networks, to expand the pipe and create a truly competitive market.
Adding to this perspective, Mr Olusola Teniola, Director of Strategic Business Initiative at ipNX, argued that Nigeria's existing telecommunications infrastructure is grossly insufficient.
He contrasted the nation's 40,000 telecom towers for a population of over 200 million with the United Kingdom's 75,000 towers for a much smaller population.
He noted that, unlike developed nations, where public funds built a robust backbone, Nigeria's infrastructure was financed by a few dominant MNOs.
“This lack of widespread infrastructure, especially outside major cities, poses a formidable challenge for new MVNOs whose mandate is to serve the millions of unconnected.
“Without substantial new investment, the MVNO business model will struggle to succeed, with only those able to survive a long-term, 7-to-10-year investment cycle likely to see a return”, Teniola warned.
In her welcome address, Business Remarks' Managing Editor, Bukola Olanrewaju, stressed that the success of MVNOs globally is dependent on regulatory enforcement, wholesale agreements, and the ability of players to navigate hurdles effectively.
Citing examples from South Africa, Thailand, and Argentina, she stated the need for Nigeria to collectively build an ecosystem that is both competitive and sustainable.
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