MVNOs will deliver better connectivity platforms for underserved communities – Expert
By Yusuf Yunus
An IT expert, Andriy Zhylenko, says the new licensing framework for Mobile Virtual Network Operators (MVNOs) will help the companies deliver better connectivity platforms and hardware solutions for underserved remote communities.
Zhylenko, the Chief Executive Officer (CEO) of PortaOne, made the call in a statement issued in Lagos on Wednesday.
The Business Intelligence (TBI Africa ) reports that PortaOne is a software company that provides adaptable billing and operations platforms for communications, mobile and Internet of Things (IoT) service providers, many of them MVNOs.
The Nigerian Communications Commission (NCC), in June, opened up licensing for independent MVNOs.
MVNO is a company that does not own a mobile spectrum licence but sells mobile services under its brand name using the network of a licensed mobile operator.
Zhylenko said the rural telecom licences by the NCC to MVNOs would drive investments to connect more of the country.
The expert said this would also be beneficial to the Mobile Network Operators (MNO), Mobile Virtual Network Operators and also to local communities.
Zhylenko said: “MVNOs have been a big part of the international telecommunications industry for decades, the first MVNO model was launched by Virgin Mobile UK in 1999.
“The new licensing framework will create unique competitive environment that will help industry analysts better assess most effective in the modern age of mobile communications, Internet of Things and Artificial Intelligence.”
Zhylenko said the licensing framework which comprises five tiers, would ultimately see many of these MVNOs in direct competition with one another.
The expert said this Nigerian experiment could also help drive the development of the next wave of communications technologies; helping to define the future of the industry in the rest of Africa and potentially across all emerging economies.
According to him, it is a unique opportunity to see how different technologies will play out in terms of providing access to more advanced and more affordable communications services.
MVNOs, Zhylenko added, tend to be early adopters of new, more adaptable and affordable technologies that need less hardware, and often even less coding expertise.
He, however, said the MVNOs were launched under the new Nigerian licensing framework which were part of a new breed of company looking for operational approaches.
Zhylenko said as more of these companies enter the market, it would drive a lot of innovation, not just in voice and messaging packages for mobile phone users, but also in e-commerce, and Electric Vehicle charging stations.
Speaking, Mr Satya Mekala, Managing Director at Brussels-based Wireless Technology Labs (WTL), said access to affordable, reliable infrastructure had been a challenge for both businesses and consumers in the African market.
Mekala said while Nigeria might be ahead of the game, the MVNO market was on the rise across the globe.
He noted that the sub-sector was expected to reach 123 billion dollars by 2028 which would be more than twice the estimated market size in 2020.
Mekala said the new MVNOs would dominate in the Nigerian market and also define the direction of the global industry over the next few years.
“New technologies such as e-SIM are drastically simplifying the logistics of bringing on new mobile customers.
“Not just in the retail market, but even for enterprises they look for ways to manage things like work-from-home call centres and distributed teams.
“So, the companies that embrace the technologies that can make life easier for their business and retail customers will win, especially as those customers spread the word on social media,” he said.
