• Monday, April 22, 2024
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Interswitch mulls telecom operations, gets MVNO license

Interswitch mulls telecom operations, gets MVNO license

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.”

Read also: Inflation erodes N8.4tn telecom sector gain

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.