Stakeholders Task MVNO’s License Operators on Rural Connectivity

Emma Okonji

Industry stakeholders have tasked licensed Mobile Virtual Network Operators on the need to expand connectivity to rural, un-served and underserved areas of the country, to enable all Nigerians have access to connectivity.

While applauding the Nigerian Communications Commission (NCC) for announcing the licensing of MVNOs in the country, the Managing Director, Wireless Technology Labs, Satya Mekala, advised MVNOs to include rural connectivity strategies in their plan in order to serve those in rural communities. Giving instances where over 45 million Nigerians are without connectivity, Mekala said by building rural networks, MVNOs could acquire huge customer base that would make them stable and achieve a faster return on Investment (ROI).

Speaking about the sub-topic, ‘How to build a successful MVNO business in Nigeria’, Mekala said the success of any MVNO is heavily dependent on choosing the right strategy to acquire sufficient subscribers.

To choose the right market segment to acquire a lot of subscribers quickly, the acquisition strategy must be well designed as this is one of the highest costs for an MVNO. “It is about the means available to access the service offering as MVNOs offering data services only, may want to subsidize smartphones. This can create huge debt in the beginning,” Mekala stated.

The Managing Editor of Business Remarks, Bukola Olanrewaju, said the increasing number of mobile subscribers, technological advancements, and demand for connectivity, have played an important role in creating a significant opportunity for MVNOs to thrive in the sector.