Telcos In Panic Mode As NCC Abruptly Halts New License Issuance

The issuance of new licenses in three categories has been suspended by the Nigerian Communication Commission (NCC).

The categories that were suspended are the Mobile Virtual Network Operator License, Interconnect Exchange License, and Value Added Service Aggregator License.

The NCC, by its powers under the Nigerian Communications Act 2003, has the authority to grant and renew licenses while promoting fair competition in the industry.

However, it is important to note that the suspension does not impact pending applications, which will be evaluated based on their merits.

The Mobile Virtual Network Operator License allows companies without their mobile spectrum license to offer mobile services under their brand name using the network of a licensed mobile operator.

On the other hand, the Interconnect Exchange License facilitates the interconnection of multiple independent entities to facilitate electronic communications transfer.

Lastly, the Value Added Service Aggregator License covers non-core network telecommunication services such as internet, directory service, paging service, voice mail, prepaid calling card service, call center services, content services, and vehicle tracking.

The NCC announced the license issuance suspension through a public notice posted on its official communication channel.

The Commission stated that the temporary suspension is necessary to conduct a thorough review of various aspects, including market saturation, competition levels, and current market dynamics.

Reuben Muoka who is the Director of the Public Affairs Department at the Nigerian Communications Commission, signed the notice.

In the statement, the NCC emphasized its commitment to promoting fair competition, developing the communications industry, and ensuring a thorough evaluation of the key areas within the affected license categories.

During the suspension period, which commenced on May 17, 2024, the NCC will not accept new applications for the aforementioned licenses.

However, this does not affect applications that are currently pending before the Commission, as they will be assessed on their merits.