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By Olusegun Oruamne – Matters eRising
A Personal Reflection on a Tough Telecom Truth
I have followed Nigeria’s telecom evolution long enough to know one thing: nothing about this sector is ever a tea party. It is capital-intensive, politically sensitive, technologically demanding, and brutally unforgiving.
RELATED: Nigeria’s new telco Vitel Wireless gears for inaugural MVNO market launch
That is why the Mobile Virtual Network Operators (MVNOs) story was never going to be smooth sailing in a market where incumbent Mobile Network Operators (MNOs) have poured trillions of naira into spectrum licenses, towers, fibre, diesel-powered base stations, branding, and nationwide rollout. And this is often in a highly volatile operating environment.
Today, only two out of 46 licensed MVNOs are actively operating. That statistic alone should force us to pause. This is not merely a slow start; it is a loud signal that a license does not equal viability.
Understanding the Fear on Both Sides
Much has been said about the struggles of MVNOs. Less said, perhaps unfairly, is the genuine fear of MNOs.
Operators like MTN, Airtel, Globacom, and 9mobile did not inherit their dominance. They paid billions of dollars for licenses, endured policy flip-flops, forex shocks, vandalism, power failures, right-of-way disputes, and intense public scrutiny.
In a sector where returns are long-term and risks are immediate, any new model that potentially dilutes market share naturally triggers caution.
From their perspective, MVNOs look less like “partners” and more like competitors without the same balance-sheet burden. That fear; whether justified or not, shapes wholesale pricing, integration speed, and infrastructure-sharing behaviour. You cannot play ostritch with this hard fact.
The MVNO Reality Check: Expectations vs Execution
Several hard questions must be asked honestly:
- Did many MVNOs underestimate operational complexity while overestimating market readiness?
- Why are most chasing saturated urban consumers instead of underserved rural and peri-urban niches?
- Can a business survive on unenforceable Service Level Agreements (SLAs)?
- Is the current wholesale access framework structurally broken?
Telecom is not plug-and-play. It is systems, scale, and stamina.
Why Most MVNOs Haven’t Launched
The reasons are layered and interconnected:
1. Unworkable Wholesale Pricing
MVNOs depend entirely on leasing capacity from MNOs. High wholesale rates (designed to protect incumbent margins), make it almost impossible for virtual operators to offer competitive retail pricing.
2. Infrastructure Constraints
Many MVNO licenses were issued at a time when host MNOs were themselves struggling with degraded networks, energy costs, and upgrade backlogs. There simply wasn’t much excess capacity to share.
3. Weak Business Models
Some licensees acquired permits without a deep understanding of telecom economics. Operating strictly within host coverage footprints limits differentiation and expansion, especially into rural areas.
4. Regulatory Delays
The business rules took years to finalize, leaving operators in limbo while market conditions shifted beneath their feet.
Vision vs Reality: A Familiar Nigerian Pattern
The licensing of MVNOs by the Nigerian Communications Commission (NCC) was meant to boost competition, lower prices, and bridge the digital divide. In 2023, over 40 licenses were issued across five tiers. By mid-2025, only a handful had launched meaningfully.
Yes, trailblazers like Vitel Wireless showed what is possible. But the broader ecosystem remains stuck. All of then are echoing the earlier struggles of Nigeria’s InfraCos experiment.
Voices from the Industry
Telecoms veteran and energy expert Ernest Akinlola, Managing Director of Bboxx Nigeria, captures it succinctly: MVNOs face “unfavourable wholesale rates” that squeeze margins, while dominant players continue to spend aggressively on marketing to lock in direct subscribers.
He also points to a deeper irony: broadband penetration has only just crossed 50%, far from the 70% national target. About 31 million Nigerians still live in areas with zero telecom coverage. No calls, no data, no emergency access. Yet models that could help close this gap struggle to breathe.
According to Kenneth Emeka Nwabueze, CEO of Vitel Wireless, integration delays are not accidental. Connectivity issues that should take days reportedly drag on for weeks. They are symptoms of an ecosystem uneasy with disruption.
Is This a Strategy Problem, a Commercial Problem, or a Regulatory One?
The honest answer: all three.
MVNOs cannot wish away MNO dominance. MNOs cannot indefinitely stall competition without harming national digital goals. Regulators cannot rely on vision statements without enforcement teeth.
Five Hard Truths for Making the MVNO Model Work
Drawing from industry insights and lived observation, a few realities stand out to underscore Akinlola’s points:
1. Licenses Are Not Businesses
A license is permission—not a plan. MVNOs must obsess over customer needs before launch, not after.
2. Stop Trying to Outgun MNOs
You cannot outspend or out-scale incumbents. Go where they don’t focus: rural farmers, students, remote healthcare access, niche enterprise solutions.
3. Build a Collective Voice
MVNOs need coalitions, not silence. Regulators respond faster to numbers, data, and public pressure than to isolated complaints.
4. Enforceable SLAs Are Non-Negotiable
Delays are not “normal.” They are commercial weapons. Contracts must reflect that reality.
5. Regulation Must Bite
The NCC must move beyond dialogue to enforcement—fast-track dispute resolution, penalties for obstruction, and standardized wholesale pricing frameworks.
Progress Demands Empathy and Courage
This is not an anti-MNO argument. Nor is it blind advocacy for MVNOs. It is a call for balance.
Fear should not shape Nigeria’s telecom future: neither the fear of incumbents losing ground nor the fear of innovators stumbling. If we are serious about inclusion, affordability, and scale, then execution, not just licensing, must become the standard.
The market does not reward intention. It rewards those who understand reality and adapt boldly to it.
Oruame is a media entrepreneur and technology advocate with over two decades of experience shaping Africa’s tech and media landscapes. He is the founder of IT Edge News Africa (2004), a leading pan-African tech intelligence platform, and Baobab Africa Online (2009), a venture focused on development and innovation.
