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May 24, 2026

NCC sets new business rules for MVNOs, warns HNOs against friction

By Upfrontdigital News 0 3 Views

By Favour Unukaso

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 feelers from the industry, especially as regards smooth take-off of the MVNO operations in the country, after about three years since the NCC licensed some 43 operators, which coughed out 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 appeared overwhelmed by industry challenges and business agreements with host operators.

  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.

Maida, NCC EVC

    The telecom 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.

   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.

  The Commission noted that: “Gross Revenue will be calculated at benchmark rates before deductions. Only permitted deductions, such as interconnect charges and wholesale bandwidth costs, will apply. Shareable Revenue will form the basis for host-MVNO settlements.”

   This approach, NCC explained, ensures fairness, prevents anti-competitive pricing, and supports sustainable MVNO operations.

    The rules also reinforce obligations around Quality of Service, fraud management, lawful interception, and customer care. Remote subscriber onboarding, including eSIM activation, must comply with the Registration of Communications Subscribers Regulations 2022.

   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. By mandating transparency in onboarding and revenue sharing, the NCC is positioning MVNOs as key drivers of competition in a market dominated by major Mobile Network Operators (MNOs).

   As the Commission stated: “These Business Rules provide regulatory clarity on MVNO integration, interconnection, numbering, SIM and eSIM responsibilities, and related operational arrangements.”

   With the framework now in place, stakeholders expect a surge in MVNO applications and partnerships, particularly in underserved regions where Tier 4 and Tier 5 operators are permitted to extend retail services.

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