NCC unveils revised MVNO rules to boost competition, protect consumers

The Nigerian Communications Commission (NCC) has released an amended working draft of the Business Rules for Mobile Virtual Network Operators (MVNOs), introducing a comprehensive regulatory framework designed to accelerate market entry, strengthen competition and improve consumer protection in Nigeria’s telecommunications sector.

The revised guidelines, published as Version 2.0 of the Commission’s MVNO Business Rules, provide clearer operational standards governing onboarding, network integration, revenue sharing, licensing obligations and service delivery between Mobile Virtual Network Operators and their Host Network Operators (HNOs).

According to the Commission, the updated framework responds to industry feedback following the licensing of 43 MVNOs nearly three years ago.

Although the operators collectively paid more than N8.6 billion for various licence categories, only a handful have commenced operations, while many others continue to face commercial and technical hurdles.

Industry stakeholders have attributed the slow rollout to prolonged negotiations with host operators, operational complexities and disagreements over commercial terms.

To address these challenges, the NCC said the new rules seek to establish enforceable rights and obligations for both MVNOs and Host Network Operators, promote fair and transparent access to network infrastructure, reduce onboarding delays, improve service quality and support sustainable growth within the telecommunications industry.

The Commission reiterated that all MVNOs must operate strictly within the scope of their licence categories, while host operators are prohibited from engaging in discriminatory practices capable of delaying integration or frustrating market entry.

The revised framework also retains Nigeria’s five-tier MVNO licensing structure, defining the operational responsibilities and technical capabilities of each licence category, ranging from service-based MVNOs to unified MVNOs with broader operational responsibilities.

Under the proposed rules, no MVNO will be permitted to operate independently without a hosting agreement with an approved network operator, with regulatory sanctions prescribed for violations.

To streamline onboarding, the Commission directed Host Network Operators and Tier 4 and Tier 5 MVNOs to provide prospective operators with comprehensive onboarding information covering technical requirements, application programming interfaces (APIs), fraud management procedures and pricing principles.

The NCC also introduced timelines aimed at preventing unnecessary delays. Host operators will be required to acknowledge onboarding requests within 10 days, respond on technical readiness within 20 days and conclude both commercial and technical agreements within 120 days.

The Commission said it would retain oversight powers to resolve disputes, enforce compliance and ensure operators adhere to the prescribed timelines.

On commercial arrangements, the NCC disclosed that revenue sharing between operators would be guided by its Tariff and Pricing Framework for MVNO Services, with settlements based on Benchmark Selling Prices for voice, data, SMS and USSD services.

The regulator said the pricing framework is intended to promote fairness, discourage anti-competitive conduct and provide a sustainable operating environment for virtual network operators.

Industry analysts believe the revised business rules could unlock fresh investment in Nigeria’s telecommunications sector by lowering barriers to entry, encouraging innovation and expanding affordable telecommunications services to underserved segments of the market.

They also note that a clearer regulatory framework is expected to boost investor confidence, improve collaboration between network operators and MVNOs, and accelerate the long-awaited rollout of virtual mobile services across the country.