Satya Mekala, CEO of WTL, said MVNOs bring unique opportunities for consumers and can offer value-added services (VAS) that MNOs don’t offer. “There are also opportunities for MVNO services aimed at the education or financial services sector, or offering data-only SIMs or roaming SIMs.
- Lack of infrastructure may prevent coverage of 23m unserved Nigerians
- Operators pay as much as N500m for licences
- Expert claims equity, not branding or pricing, will decide survival
The much-expected mobile virtual network operators (MVNO) are set to take off this quarter with some already deploying infrastructure while others have commenced operations.
For emphasis, MVNO is a telecom firm that doesn’t own its mobile network infrastructure. Instead, it leases access to an existing network (usually from a Mobile Network Operator – MNO) to provide unique mobile services to its customers.
The operation could mark the first major disruption in Nigeria’s $76 billion telecommunications sector 24 years after the revolution that birthed the current operators.
According to information obtained by The Guardian, as of 2024, the Nigerian Communications Commission (NCC) had licensed about 43 players to operate in the country, after they coughed out over N8.6 billion for the various tiers of licenses.
MVNO services are coming almost three years after the NCC issued the first sets of licenses to operators. While some quarters of the telecom market expect some disruptions from the MNVOs immediately, findings by The Guardian showed that penetration of this revolution could take about five years if not more to realise as there are several market realities pointing to that effect. This is especially true if one takes a cue from countries, including South Africa, and Senegal, among others, where the MVNO technologies have been deployed.
With many Nigerians still not conversant with the modalities of this service offering, especially in a market already dominated by MNOs, that is the quartet of MTN, Airtel, Globacom and 9mobile, the penetration of MVNOs will take a while.
As stated, the Nigerian telecoms market has attained a high penetration rate from MNOs. With about 320 million connected lines, where 172 million are currently active (After NIN-SIM audit). As of the first quarter of 2025, MTN alone boasts of 90 million subscribers. Airtel has 58 million, while Globacom services 21 million users. This meant MVNOs aren’t entering a greenfield market with huge untapped potential for basic mobile services.
In Nigeria, like other markets, there is strong customer loyalty. Though they may not be enjoying the services rendered to them, many customers are already locked in contracts or have established relationships with the existing MNOs, making it harder for a new entrant to attract them.
As seen in other climes, there are going to be unfavourable wholesale rates. Early MVNOs are likely going to face higher wholesale rates from the host MNOs, which will likely squeeze their margins and make it difficult to offer significantly cheaper tariffs.
Offshore findings revealed that MNOs had little incentive to offer highly competitive wholesale prices when they already dominated the market.
Further market realities include customer acquisition costs. Acquiring customers in a saturated market, against well-funded incumbents, is always expensive. This means that MVNOs would need to invest heavily in marketing and sales to build brand awareness. There is also the challenge of brand recognition, which is where trust comes in.
With those market realities already in play, The Guardian also gathered that parts of the delay in the take-off of this initiative in the country had to do with the issue of congestion on the MNOs’ networks.
A source within the wireless space of the telecom sector, who is handling some unbundling for MVNOs and MNOs, told The Guardian that the existing telcos are worried about the service impact on their networks, especially as they currently deliver poor services to their customers due to capacity issues, among others.
“The challenge in that space is huge. There is a capacity issue, there are fears of network congestion. They have slowed the unbundling process; the reason we have not seen many announcements from the MVNOs.
“MNOs are currently facing the challenge of improving service and MVNOs want to bring more capacities into their networks. It is still a major issue,” he stated.
Confirming the issue, the Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, said the coming of MVNOs is tied to the industry’s sustainability, “because you can’t give what you don’t have. Recall that part of our challenges is that we couldn’t expand the network, we couldn’t create more capacities because the industry has sustainability problems. These are glaring issues in the sector. And given the limitations we had as network operators, it will be difficult to add more people onto the network, in terms of sharing capacities because you can’t give what you don’t have.
“However, that issue is being addressed at the highest level and what is now left is to finalise some terms. But, it is still a function of all the challenges we have had in our sector. Like I said, you can’t give what you don’t have. You can’t give capacity where you are struggling, still facing issues. But progress is being made.”
By their configurations, MVNOs are expected to take niche services to the underserved and unserved communities. Nigeria closed its connectivity gap by 57.97 per cent between 2013 and 2024. The number of unconnected clusters, areas with little to no network services, has fallen from 207 to 87, benefiting 13.8 million people.
The Universal Service Provision Fund revealed that in 2013, the number of people living in unserved and underserved areas amounted to 36.8 million and has fallen to 23 million.
Invariably, MVNOs are expected to take services to these 23 million Nigerians. However, this appeared to be on paper alone. Industry stakeholders noted that virtual operators cannot extend network coverage to areas lacking telecom infrastructure, however, they noted that MVNOs can play a role in addressing the usage gap in regions that already have coverage but low adoption.
Speaking at a telecom event on the MVNOs in Lagos, the Chief Executive Officer of Lebara Nigeria, a subsidiary of the UK-based Lebara Group, Teni Stuffman, said “MVNOs can only operate in areas where network coverage already exists. As you know, we don’t provide core infrastructure.” She explained that MVNOs can only operate within the coverage provided by their partner MNOs.
Stuffman also noted the difficulty MVNOs face in securing agreements with MNOs, which remains a major bottleneck. Ayo Oladejo of Digipractice stressed the importance of MVNOs identifying and addressing niche customer needs that are often overlooked by mainstream providers.
“To succeed, MVNOs must attract dissatisfied users by offering tailored, high-value alternatives. Your brand must resonate with your target audience,” he stated.
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CEO of Open Access Data Centres Limited, Ayotunde Coker, warned that MVNOs cannot afford to focus on delivering the same services as MNOs. “It won’t work. At best, they will capture less than five per cent of the market,” he said.
Amid these issues, the industry’s legacy challenges constitute another risk that could scuttle the smooth take-off of the new entrants, which are expected to inject new life into the sector. These challenges include vandalism, fibre cuts, multiple taxation, vandalism, and interconnect debts, among others.
Despite the identified challenges, some of the MVNO licensees have expressed readiness to take on the market. Precisely, these three operators target this quarter for service rollout. They are Vitel Wireless, Liv.ing and EMOSIM MVNO. Some other operators, which also planned to roll out services before the year ends include Routelink, Flex Mobile among others.
EMOSIM MVNO recently announced the commencement of its services. It is introducing an electronic SIM (e-SIM) product, which makes the traditional roaming method of network interconnection look outdated.
EMOSIM’s e-SIM allows users to connect to mobile networks in 190 countries without changing SIM cards or paying roaming fees. Chairman and Founder of EmoSIM, Jimmy Eboma, said the technology works through virtual e-SIM activation via QR code or mobile app, eliminating the need for physical SIM cards.
Eboma described the innovation as a revolution that would enable travellers, businesses and families to stay connected seamlessly across borders. He said: “Connectivity is not a luxury; it is a lifeline. With EMOSIM, we are not just launching a product; we are launching a revolution that will empower an entire ecosystem of travelers, businesses, and families.”
Vitel Wireless, which became the first MVNO in the country to be issued a mobile number series by the NCC, has the 0712 mobile number series and has started opening experience centres in Lagos, Abuja, Enugu, Port Harcourt and Kano where customers can purchase SIM cards ahead of Q2 operations.
The network will go live in Nigeria’s major cities first and then expand nationwide. Chairman and CEO of Vitel Wireless, Kenneth Nwabueze, said the company’s acquisition of its unique mobile number series, 0712, demonstrated the NCC’s confidence in the company’s vision and readiness to serve the Nigerian market.
As part of its international readiness, Vitel Wireless was also issued its own international routing code by NCC, enabling seamless international connectivity and positioning the company to offer high-quality global telecommunications services.
With a focus on leveraging the latest technology and enhancing customer satisfaction, Vitel Wireless said it will transform the MVNO landscape in Nigeria, offering tailored solutions that meet the diverse needs of individuals and businesses.
For Liv.ing, its target with the MVNO licence is to unlock access to essential services such as communication, education, healthcare, and financial freedom for 230 million Nigerians.
This digital solution is also designed to empower families, communities, small and medium-sized enterprises (SMEs), and businesses across Nigeria. The Chairman of Liv.ing’s Board of Directors, Bolaji Osunsanya, emphasised that Liv.ing is more than just a mobile network—it is a platform dedicated to redefining the concept of living and improving the quality of life for 230 million Nigerians.
While the struggle remains with Nigeria, checks showed that MVNOs have gained ground in countries like South Africa, Senegal and Kenya. Data from ICT market research firm, Africa Analysis showed that at the end of 2023, the Africa Region had about 10.6 million MVNO subscribers, making up a very small portion of the overall mobile market, but projections showed subscribers will grow to 19 million by 2028.
The NCC realised N8.6 billion from the 43 licences issued through the tiered licensing model in Nigeria. These include Tier 1 – Virtual Operator (resellers using MNO SIM cards that are rebranded); Tier 2 – Simple Facilities Operator (resellers that can also provide VAS); Tier 3 – Core Facilities Operator (companies with complete core systems, business support systems (BSS), full control over SIM cards, and a global title and numbering plan); Tier 4 – Virtual Aggregator or Enabler (wholesale companies that can install a full core network and BSS and offers services to other MVNOs as an enabler or aggregator) and Tier 5 – Unified Virtual Operator (the most complex tier allowing licensees to offer a bespoke combination of Tier-1 to Tier-4 services, including an infrastructure license).
Specifically, Tier 5, 10 companies committed N500 million each; Tier 4 (Six firms) paid N200 million each; Tier 3 (15 firms) paid N130 million each; Tier 2 (11 companies) committed N60 million each and Tier 1 licensees paid N35 million each.
One of the equipment vendors, which is currently working with some Nigerian MVNOs as they launch, WTL told Connecting Africa that Nigeria is ripe for the operations.
Satya Mekala, CEO of WTL, said MVNOs bring unique opportunities for consumers and can offer value-added services (VAS) that MNOs don’t offer. “There are also opportunities for MVNO services aimed at the education or financial services sector, or offering data-only SIMs or roaming SIMs. “There are several ideas, and each idea has its own business case. So based on that, the investment will be different, the running out of the OpEx will be different, and the access to the market will be different. So, these are the things which a small company can do when innovative ideas pop up,” he added.
Speaking on Nigeria’s potential, the Founder of South African-headquartered company, MVNE, Yaron Assabi, said Nigeria has the potential to become one of Africa’s most dynamic MVNO markets.
“While the MVNO market is still in its early stages, it holds immense potential to drive innovation, enhance service delivery, and expand digital inclusion,” he stated.
MVNE is part of Digital Solutions Group (also founded by Assabi) which supports partners in South Africa, Namibia, Kenya, Ghana and Tanzania.
“We are actively expanding our footprint across West and East Africa, and Nigeria is a major strategic focus for us in 2025 and beyond,” Assabi explained.
On the excitement currently weighing on the telecoms sector because of the MVNO, in an email write-up, a telecoms strategist, Adia Sowho, said distribution equity and not branding or pricing will decide survivors in the market.
“Distribution is the real game. Not just marketing. Not awareness. Not buzz. Distribution equity — your ability to consistently and scalably get your product into the hands of the right customers, at the right time, in the right channel — is what separates the MVNOs that live from the ones that light money on fire,” She stated.
She noted that most consumers don’t care about the brand, rather, “they care about: Can they find you when they need a SIM? Can they trust that you’ll work? Can they top up easily and cheaply? “
