More networks, less value: Irony of Nigeria’s telecom landscape

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Despite the licensing of over 40 Mobile Virtual Network Operators (MVNOs) by the Nigerian Communications Commission (NCC) since 2022, telecom users across Nigeria continue to suffer from poor service quality. Issues like call drops, disappearing airtime, and slow data persist, leaving many to question the effectiveness of this expansion. Although MVNOs were expected to disrupt the market, few have made a visible impact so far. The latest hopeful entrant is global MVNO giant, Lebara, whose arrival may signal a shift in what has been a slow and frustrating rollout

The limitations of MVNOs are largely due to their dependence on existing Mobile Network Operators (MNOs) like MTN, Airtel, Globacom, and 9mobile. MVNOs lease infrastructure from these giants, meaning any network issues—like congestion, power shortages, or vandalism—are inherited by the virtual operators. This prevents MVNOs from expanding coverage or improving service on their own. Compounding the problem are delays in securing fair wholesale agreements, as dominant MNOs remain hesitant to fully open up their networks to competition.

Lebara Nigeria, operating under a Tier 5 MVNO license, has gained full interconnectivity with all major MNOs and introduced a dedicated 0724 number series. Promising transparency and a user-friendly minutes-based billing model, Lebara aims to tackle long-standing consumer frustrations. Alongside Lebara, Vitel Wireless has also achieved full interconnectivity and begun pilot operations, suggesting the market is finally gaining traction. These developments raise hopes that MVNOs can now move beyond paperwork to real, impactful service delivery.

Industry experts stress that licensing alone won’t deliver better telecom services. As ATCON President Tony Emoekpere put it, “Licenses don’t launch businesses, value does.” Stakeholders at the MVNO conference called for stronger regulatory enforcement by the NCC, including fair wholesale pricing and protections for MVNOs. Additionally, MVNOs must adopt agile, startup-like strategies with digital-first models, localized services, and smart partnerships—especially to serve underserved populations. Collaboration, not competition, was echoed as the pathway to success.

For MVNOs to succeed, they need more than infrastructure access—they need vision, innovation, and investor backing. Leaders like Lebara’s CEO and industry voices like Hamish White and Satya Mekala urge MVNOs to focus on user-centric value, fintech-inspired simplicity, and long-term differentiation. If companies like Lebara and Vitel deliver on their promises, they could finally force the telecom sector to prioritize customer satisfaction. As Dr. Ayotunde Coker put it, building Nigeria’s telecom future is not just about connectivity—it’s about collaboration, creativity, and courage.

Source: The Sun

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