The Nigerian Communications Commission (NCC) in 2017 published a Request for Proposal (RFP) for the “Development of a Licensing Framework for Mobile Virtual Network Operators (MVNOs) in Nigeria”. This framework document has been developed in pursuant of the RFP and the Nigerian Communications Act, 2003.
In the publication, Commission spelled out the conditions and recommendations in this document represent careful analysis and reporting of findings obtained from desktop research into other jurisdictions and the regulatory approach utilized in licensing MVNOs within their respective regions. According to reviews of past and present surveys of the Nigerian market, along with current regulatory documents were conducted to ascertain the readiness of the Nigerian telecommunications market for Mobile Virtual Network Operators.
NCC further disclosed that from both global and local research, along with adapting International Best Practices have been used in formulating this framework.
“An internal workshop as well as an Industry stakeholder focused group discussion was conducted, and all comments have been taken into consideration in the development of this framework document.
“The Commission reserves the right to amend this framework as it deems fit.
This document should be read alongside:
i. The Nigerian Communications Act, 2003
ii. The Unified Access Service License Framework,
iii. Other related Regulatory and Guideline documents as stated within this framework.
1. Objectives of the License Framework
In the report excerpted from commission website stated that the core objectives of licensing Virtual Network Operators are as follow:
a) To give the service providers of virtual mobile communications service an opportunity to participate in the telecommunications provisioning market of Nigeria, with an emphasis on improving the telecommunication output of the country.
b) To ensure that all core stakeholders are adequately catered for and protected within a Virtual Network Operator enabled environment.
c) To allow for the Virtual Network Service to contribute to the availability and expansion of quality mobile coverage through redundant capacity utilization, active infrastructure sharing, national roaming, and other telecommunication elements that enable it.
d) To present guidelines to which MVNO operations can flourish within the Nigerian Telecommunications market..
c) Customer Relationship Management – Provision of necessary Customer Relationship Management systems for catering to customers and their needs, resolving issues and disputes with customers, etc.
d) Devices, Applications Services and SIM Management – Provisioning of Application and Value-Added Services, ensuring proper SIM management operations, meeting Quality of Service (QoS) Key Performance Indicators (KPIs) with regards to VAS and related services, etc
e) International Data and Voice services
f) Facility Management–Ensuring that devices and facilities meet the technical standards set by the Commission
g) Core Network functions and Spectrum Access – Provisioning of network access to ensure quality delivery of mobile telecommunications services to the end users, ensure frequency standards are met for spectrum access, etc.
In term of Regulatory Intervention, the Commission proposes no Mandatory regulation of MNO – MVNO negotiations and as such suggest a purely commercial agreement between the two parties. This proposal is put forward in good faith that negotiations and resolutions shall be fair and expeditious.
“In the likelihood that negotiations or resolutions appear unfair and in violation of the good faith by any of the parties involved, the Commission maintains the position of intervening as deemed fit, in pursuant of reports submitted by either party detailing reasons of suspected unfair negotiation or resolution practice.
NCC in the document noted that unfair negotiation practices are outlined below:
i. Obstructing or delaying negotiations or resolutions
ii. A party being coerced or misled to make an agreement against its intent
iii. Non-provision of information about service provider’s capacities that are necessary for wholesale agreements
iv. Attempting to preclude furnishing of information by a service provider to the Commission through Non-Disclosure Agreements
v. Offering discriminatory terms
vi. Negotiating terms that are static and prevent amendment in the likelihood of a change in the Commission’s statutes
vii. Any other negotiation or resolution practises that a party deems unfair and detrimental to the efficient and prompt conclusion of said agreements.
The operations of an MVNO within the Nigerian market. It is represented as subsystems which indicates the level of control an entity possesses within the mobile service delivery value chain, depicted in Annexure A.
A 4-tier system is proposed with an opportunity to choose a unified license in which the entity has the freedom to operate within any of the tiers. Within this section, the potential mobile virtual network operator will be abridged to VO (plural VOs).
