TheCable

The Nigerian Communications Commission (NCC) says it has granted Routelink a mobile virtual network operator (MVNOs) licence.

The commission, in a statement on Tuesday, said this is the third licence the company would be getting since it entered Nigeria’s telecommunications space.

The NCC said the MVNO certification is a new mobile licence category that is aimed at bridging the gap between the unserved and the underserved in the country.

An MVNO is a company that does not own a mobile spectrum license but sells mobile services under its brand name using the network of a licenced mobile operator.

Speaking on the development, Femi Adeoti, group managing director of Routelink Group, said the firm got the MVNO licence based on the perception of what it is set to do in the market.

According to Adeoti, the new licensing of MVNOs, which is a new category in Nigeria, would translate into lower costs, more service options, and better quality of service as its ultimate beneficiaries are the subscribers.

“Routelink is excited about the opportunities that abound in the Nigerian telecom marketplace and is determined to make a major difference as regards the quality of service and innovation,” Adeoti said.

On his part, Ikechukwu Nguzo, managing director of Routelink telecom, says he believes the introduction of MVNOs in Nigeria has the potential to stimulate growth in the Nigerian telecom industry.

Nguzo also said MVNOs bear many benefits to consumers, including coverage expansion, more innovative services, improved service offerings, and partnership opportunities.

“MVNOs have continued to gain traction across the world, with the increase in mobile phone users globally,” Nguzo said.

“The increased usage of smartphones and mobile data services, as well as the growing preference for flexible and customised mobile services, are primarily responsible for the growth.

“However, the success of MVNOs in Nigeria would depend on various factors such as regulatory policies, infrastructure availability, and market demand.”

Earlier this month, NCC, in its drive to create an enabling environment, said it had begun issuing the MVNOs licence.

This, the commission, said would generate employment and bridge the gap between the unserved and the underserved society.

The agency believes it would also engender competition and provide choices for telecommunication consumers.