Stakeholders in Nigeria’s telecommunications sector are sounding the alarm: up to half of the country’s over 40 licensed Mobile Virtual Network Operators (MVNOs) could fail within the next five years. Experts argue that simply holding a license may not be enough to survive in a market dominated by major players like MTN and Airtel. The key to sustainability, they say, lies in strategic planning, niche market targeting, and a focus on local realities.
The Path to Success for MVNOs
At the recent Telecoms Sector Sustainability Forum hosted by Business Remarks in Lagos, industry leaders outlined a clear path for MVNOs to succeed:
1. Invest Beyond the License: Chidi Ajuzie of USK Mobile noted that none of the licensed MVNOs have fully launched services yet. He stressed that a license is not a “cash cow” and that operators must build their own infrastructure, understand the market, and develop services that directly meet consumer needs. Without this foundational work, many will fail.
2. Find a Unique Niche: Tony Emoekpere, President of the Association of Telecommunications Companies of Nigeria (ATCON), emphasized the need for market differentiation. He advised MVNOs to avoid competing directly with major network operators (MNOs) on general services. Instead, they should identify and focus on underserved areas, such as rural communities, or specific customer segments, like small businesses, that the MNOs are not currently serving.
3. Adapt to Local Realities: Olusola Teniola of IPNX cautioned against simply copying foreign business models. He highlighted Nigeria’s unique challenges, such as a lack of basic connectivity in many rural areas, and urged MVNOs to focus on this “bottom of the pyramid” market. By providing simple, affordable services to millions of people who currently lack access, MVNOs can create a sustainable business while also expanding Nigeria’s telecom sector.
The consensus among stakeholders is that while MVNOs have the potential to grow Nigeria’s telecom market and increase consumer choice, their survival hinges on urgent action. They must move beyond simply obtaining a license and instead embrace strategic planning, niche targeting, and a deep understanding of the local market to establish a sustainable foothold in the competitive telecom landscape.
