By The Nigerian Communications Commission (NCC) has temporarily stopped issuing three types of telecom licenses: Value Added Services (VAS) Aggregator Licenses, Interconnect Exchange Service (IES) Licenses, and Mobile Virtual Network Operator (MVNO) Licenses. The announcement, made on May 17, 2024, is aimed at ensuring fair competition and sustainability in the telecom industry.
VAS Aggregators act as middlemen between content providers, mobile operators, and users, helping to streamline the delivery of services. IES licenses are meant to assist smaller telecom operators with call routing and reduce interconnect debt. MVNO licenses allow companies to provide telecom services without owning physical network infrastructure, boosting competition and coverage in rural areas.
The NCC said the suspension is necessary to address market challenges. For VAS licenses, the market is oversaturated, with 49 active license holders struggling to connect with the major mobile operators. For IES, issues like interconnect debt and fraudulent activities such as SIM boxing and call masking have become major problems. As for MVNOs, the NCC is taking time to assess the market before issuing new licenses, with 43 already active.
While some stakeholders initially expressed concern about the suspension, the NCC assured the public that it is a temporary measure. The goal is to create a fairer and more sustainable environment for telecom operators and ensure better services for Nigerians.
