Stakeholders, including some new licensees in the Mobile Virtual Network Operators (MVNO) segment, have called for collaboration and market differentiation, even as they predicted stability of the ecosystem to be in another five to seven years.

At the 2025 Telecoms Sector Sustainability Forum (TSSF) in Lagos, the stakeholders also submitted that while there will be mergers and acquisitions, some licensees will not see the light of day.

The forum, which brought together major mobile network operators (MNOs), the Nigerian Communications Commission (NCC), and licensed MVNOs, served as a candid platform to diagnose the critical challenges stifling the smooth take-off of the MVNO sub-sector.

Calling for a market niche and localised solution, a Director at IPNX, Olusola Teniola, warned against replicating European or American MVNO models in Nigeria without adapting them to local realities. He noted that affordability, rural connectivity, and infrastructure challenges must be central to any strategy.

“The biggest market is not the flashy smartphone users in Lagos. The biggest market is at the bottom of the pyramid,” Teniola said. Teniola, who predicted that the stability of the MVNO ecosystem may take between five and seven years, citing that it took about five years for Virgin Mobile of the UK to stabilize, also cautioned that over-reliance on foreign-owned operators could lead to capital flight and weaken local innovation.

With about 43 licenses issued by the NCC as of 2023, Director of USK Mobile, Chidi Ajuzie, predicted that only half of the licensed MVNOs may survive within the next five years.

He stressed that licences alone are not enough to guarantee success, pointing out that operators must invest in infrastructure, understand market needs, and create tailored services.

“Too many people think that once you get a licence, the money will start rolling in. Without infrastructure and innovation, many MVNOs will die out quickly,” he said.

Ajuzie added that smaller players, especially those in lower tiers, will face significant financial pressure since they are expected to build part of their own infrastructure.

On his part, Co-founder and Executive Director, Infratel, Dr Tola Yusuf, stressed the importance of a niche market and differentiation, saying that Nigerian MVNOs to avoid competing directly with MNOs and instead carve out niche markets.

He cited examples from South Africa and India, where MVNOs thrived by focusing on segments like youth, migrant workers, and fintech services.

President of the Association of Telecommunications Companies of Nigeria (ATCON), Tony Emoekpere, said the NCC introduced multiple MVNO licence categories to liberalise the market and give consumers more options.

He argued that MVNOs can only remain sustainable if they differentiate themselves in a market already dominated by MNOs offering internet, enterprise services, and fintech.