NCC releases licensing framework for mobile virtual network operators

The Nigerian Communications Commission (NCC) has released the Licensing Framework for Mobile Virtual Network Operators (MVNOs) in Nigeria following its successful development in pursuant of the Request for Proposal (RFP) which the Commission issued in 2017.

A Mobile Virtual Network Operator (MVNO) is a telecommunications product and service operator that rides on top of the capacity of a fully Licensed 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.

According to the document titled: ‘License Framework for The Establishment of Mobile Virtual Network Operators in Nigeria’, issued by the NCC’s Department of Licensing and Authorisation, operations were warned to stick to operational guidelines stated in the license.

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Specifically, the NCC warned against anti-competitive conduct stating that licensee must comply with the competitive practices regulation issued by the Commission in delivering its services, and that a licensee must ensure that it reports all suspected anti-competitive behaviours from network operators and other MVNOs as soon as observed.

The NCC listed as anti-competitive behaviour such as attempts to unfairly strain network capacity offered to MVNO, predatory wholesale pricing, discriminatory intent in providing network capacity and entering into exclusive agreements that prevent competitors having access to capacity.

The document from the NCC further stated that misleading potential entrants on the availability of capacity and placing a condition within agreements that could lead to a disadvantaged party are anti-competitive in nature.

On the roll-out obligations, the document states that the licensee must ensure that its services are rolled out within twelve months of obtaining its license adding that the licensee must ensure that it sticks to the terms of agreement as stated in its business proposal and service delivery within the MVNO agreement with MNO.

The document stressed that the Commission reserves the right to review the performance of the licensee during the current license tenure to ascertain the worthiness of the licensee to continue delivering its services.

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Similarly, the document stated that a 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.

It added that the license can be revoked if the licensee operates beyond the scope of the tier it has indicated and paid the license fees for.