Mobile Virtual Network Operators (MVNOs) cannot extend network coverage to areas lacking telecom infrastructure, industry stakeholders have clarified. However, they noted that MVNOs can play a role in addressing the usage gap in regions that already have coverage but low adoption.
According to GSMA, about 120 million Nigerians do not use mobile internet despite living in areas with network coverage. In an earlier report, the association highlighted that only around 29 percent of Nigerians, approximately 58 million people, actively use the internet.
“MVNOs can only operate in areas where network coverage already exists. As you know, we don’t provide core infrastructure,” said Teni Stuffman, chief executive officer of Lebara Nigeria, a subsidiary of the UK-based Lebara Group.
Read also: MVNO growth, competition in focus at upcoming forum
Stuffman and other stakeholders made this clarification at the MVNO Nigeria 2025 Conference, themed ‘Unlocking Growth, Competition and Connectivity,’ organised by Hyerscalers.
They aimed, among other things, to dispel the misconception that MVNOs are expected to expand telecom services to unserved areas. She explained that MVNOs can only operate within the coverage provided by their partner Mobile Network Operators (MNOs).
Nigeria licensed 43 MVNOs in 2023 to usher in a new phase of telecom innovation. However, many of these operators have struggled to launch due to several challenges, including unresolved agreements with MNOs, difficulty in defining clear market niches, and inadequate regulatory enforcement.
MVNOs are telecom service providers that do not own spectrum or physical infrastructure. Instead, they rely on wholesale or revenue-sharing agreements with established MNOs to deliver services.
According to Tony Emoekepere, President of the Association of Telecommunications Companies of Nigeria (ATCON), MVNOs have the potential to accelerate inclusion, foster innovation, and stimulate competition in the telecom sector.
He noted that around the world, MVNOs have demonstrated their ability to create value, especially through niche marketing, service bundling and agile operations.
Read also: How Layer3Cloud is positioned to support MVNOs with Cloud Services
“In Nigeria, MVNOs can deliver customised offerings in local languages, ad-supported data access, fintech-integrated plans and hyperlocal content and services,” he stated.
Ayo Oladejo of Digipractice stressed the importance of MVNOs identifying and addressing niche customer needs that are often overlooked by mainstream providers.
“To succeed, MVNOs must attract dissatisfied users by offering tailored, high-value alternatives. Your brand must resonate with your target audience,” he advised.
Ayotunde Coker, CEO of Open Access Data Centres Limited, warned that MVNOs cannot afford to focus on delivering the same services as MNOs. “It won’t work. At best, they will capture less than five percent of the market,” he said.
Hamish White, CEO of UK-based Mobilise Global, agreed, noting that the MVNOs are better suited to offering bundled services across telecom, fintech, content, and smart technology.
Despite these opportunities, drawbacks remain. White pointed to infrastructure deficits in rural areas, affordability constraints, and a highly competitive market with low average revenue per user as persistent hurdles.
Read also: NCC reviews MVNO license, others for market effectiveness
Stuffman of Lebara Nigeria also noted the difficulty MVNOs face in securing agreements with MNOs, which remains a major bottleneck.
Still, White believes these challenges can be overcome with youth-centric, flexible offerings, affordable prepaid plans, and mobile-enabled digital financial services.
Oladejo of Digipractice noted that successful partnerships between MVNOs and MNOs can benefit MNOs, who will be able to reach customers they aren’t currently serving.
Emoekepere of ATCON added, “MVNOs must be clear-eyed about their business models, focus on niche markets, execute with precision, and deliver a superior customer experience.”
