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.

The payment firm disclosed this in its financial report, which said it is “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.”

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With this license acquisition, the payment company hopes to leverage the infrastructure of Nigeria’s major telecommunications companies to offer affordable 4G or 5G services, particularly in underserved regions where gaps exist.

In 2023, the telecom regulator began granting licences to MVNOs to bridge the gap between unserved and underserved areas and populations. MVNOs are wireless communication service providers that resell mobile network services bought at wholesale prices from Mobile Network Operators (MNO), such as 9mobile, Airtel, MTN, and Glo, for discounted amounts to end users and customers.

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By Temitayo Jaiyeola • March 13, 2024

Chinwe Michael is a financial inclusion advocate and economy journalist who uses compelling storytelling to drive awareness. With a background in Banking and Finance and experience across accounting, media, and education, she applies sharp analysis and attention to detail to every piece. She simplifies complex financial and economy concepts into engaging content for Africa and global audience. Chinwe also doubles as a speaker with global recognition for her expertise.

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