Interswitch Sets Sights on Nigeria’s Telecoms Market With The Acquisition of A $1 Million MVNO License
Nigerian Fintech company Interswitch is set to enter Nigeria’s telecommunications sector after acquiring a Tier 5 MVNO (Mobile Virtual Network Operators) licence from the Nigeria Communications Commission (NCC) in May 2023 for N500 million.
This was disclosed by the payment firm in its financial report, which it said that it was “investigating the launch of a low-level capital expenditure virtual telecoms model using the licence, combining payments and telecoms services to B2B customers and consumers.”
With the acquisition of this license, the payment company aims to utilize the infrastructure of Nigeria’s major telecommunications firms to provide cost-effective 4G or 5G services, especially in underserved regions with connectivity gaps.
In 2023, the telecom regulator initiated the issuance of licenses to MVNOs to address disparities in unserved and underserved areas and populations. MVNOs are wireless communication service providers that resell mobile network services purchased at wholesale rates from Mobile Network Operators (MNOs), like 9mobile, Airtel, MTN, and Glo, at reduced prices to end users and customers.
Interswitch will ride on the infrastructure of its telco partner to bring value-added services to consumer segments that have been ignored or underserved by the telcos. With this license, Interswitch can provide cheaper 4G or 5G services to Nigerians or provide telecommunication services to rural areas.
