Home Telecom NCC stops issuance of 3 categories of licence to telecom operators

NCC stops issuance of 3 categories of licence to telecom operators

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The Nigerian Communication Commission (NCC) has announced a temporary stoppage of the issuance of new licences to telecom operators. 

The suspension is however only three categories of operation which include Mobile Virtual Network Operator, Interconnect Exchange Licence, and Value Added Service Aggregator.

The new directive was made public on the official X of NCC.

Under the NCC Act 2003, the regulator is vested with the power to grant, renew, or suspend licences to encourage fair competition.

It clarified that the effective date of the suspension would exclude pending applications for licences in the involved categories.

Virtual Operators Licence allows a company that does not own a mobile spectrum licence to sell mobile services under its brand name using the network of a licensed mobile operator.

The Interconnect Exchange Licence enables the interconnection of more than two independent connecting entities to facilitate electronic communications transfer.

Value Added Service Aggregators include non‐core network telecommunication services which are beyond standard voice calls such as internet, directory service, paging service, voice mail and prepaid calling card service, call centre services, content services, and vehicle tracking.

Further to the X handle notice, NCC issued a statement signed by the Director, Public Affairs Department, Mr. Reuben Muoka.

“In line with its powers under the Nigerian Communications Act 2003 to grant and renew licenses, promote fair competition and develop the Communications Industry, the Nigerian Communications Commission (The Commissions) hereby informs all stakeholders of a temporary suspension on issuance of new licenses in the following categories, Interconnect Exchange License, Mobile Virtual Network Operator License and Value Added Service Aggregator License.

“This temporary suspension is necessary to enable the commission to conduct a thorough review of several key areas within these categories, including the current level of competition, market saturation, and current market dynamics,” the statement read in part.

It added, “The public is invited to note that during the suspension period commencing on 17th of May, 2024, new applications for the aforementioned licenses will not be accepted. This is without prejudice to pending applications before the Commission which will be considered on its merits.

“Any inquiries of clarification in respect of this Suspension Notice should be forwarded to: licensing@ncc.gov.ng.”

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