The Nigerian Communications Commission (NCC) has released an amended working draft of the Business Rules for Mobile Virtual Network Operations (MVNOs), setting out a comprehensive framework to regulate onboarding, integration, revenue sharing, and consumer protection in the country’s fast-evolving telecoms sector.

The rules, published in Version 2.0 of the Commission’s MVNO guidelines, aimed to clarify licence scopes, address operational challenges, and strengthen competition in Nigeria’s mobile communications market.

The new rules appeared to be necessary based on feedback from the industry, especially regarding the smooth take-off of MVNO operations in the country, following about three years since the NCC licensed some 43 operators, which paid over N8.6 billion for various tiers of licenses.

As of today, only about three of the licensees have actually started something; some are in the process, others appear overwhelmed by industry challenges and business agreements with host operators.

The Guardian had reported exclusively on May 14, 2024, through this article, titled: “Mistrust, greed stall take-off of new telephony licensees in 31 states,” revealing how challenges and disagreements had hindered the take-off of the MVNO service in the country as of then.

Indeed, while NCC has called for stakeholders’ input in the new draft to ensure wider industry participation, the new framework seeks to establish enforceable rights and compliance requirements for MVNOs and Host Network Operators (HNOs), promote fair access to network resources and hosting arrangements, reduce onboarding delays between MVNOs and HNOs, ensure service quality, transparency, and consumer protection, and support innovation and sustainable industry growth.

The Commission emphasised that MVNOs must operate strictly within the scope of their licence tiers, while HNOs are prohibited from discriminatory practices that could frustrate integration or delay service rollout.

The rules reaffirm Nigeria’s five-tier MVNO licensing system, each with distinct roles and limitations: Tier 1 (Service-based MVNOs, limited to branding, CRM, and VAS hosting), Tier 2 (Simple-facilities MVNOs, allowed to issue SIMs and operate billing systems but reliant on hosts for switching and interconnect), Tier 3 (Core-facilities MVNOs, permitted to own switching and interconnect elements), Tier 4 (Aggregators/Enablers (MVNE/MVNA), providing shared platforms for lower tiers), and Tier 5 (Unified MVNOs, capable of hosting lower tiers but restricted from spectrum ownership).

The NCC stressed that no MVNO may operate independently of a host network, and violations will attract regulatory sanctions.

According to the 26-page document, to streamline integration, HNOs and Tier 4/5 MVNOs must provide a reference onboarding information pack, detailing technical prerequisites, APIs, fraud management protocols, and pricing principles.

The telecoms regulator listed key timelines. NCC said hosts must acknowledge MVNO requests within 10 days. Technical readiness responses must be issued within 20 days. Commercial and technical agreements must be concluded within 120 days.

The Commission retains oversight powers to intervene in disputes, enforce deadlines, and ensure compliance, saying that revenue sharing will be guided by the NCC’s Tariff/Pricing Framework for MVNO Services, with settlements based on Benchmark Selling Prices for voice, data, SMS, and USSD.

This approach, the NCC explained, would ensure fairness, prevent anti-competitive pricing, and support sustainable MVNO operations.

Meanwhile, analysts believe the new rules could significantly expand Nigeria’s telecoms landscape by lowering entry barriers for smaller operators, fostering innovation, and improving affordability for consumers.