After securing a Tier 5
Mobile Virtual Network Operator (MVNO) license from the Nigeria Communications
Commission (NCC) for ₦500 million ($1.08 million) last year, Interswitch,
Nigeria's premier payment company supported by Visa, is reportedly setting its
sights on the nation's telecom sector.
Reports suggest that
Interswitch plans to amalgamate payment and telecom services to devise tailored
solutions for both B2B clients and individual consumers. This strategy involves
a virtual telecom model with minimal capital expenditure, designed to bridge
connectivity gaps in underserved areas while tapping into Nigeria's expansive
mobile phone market.
By collaborating with
partners in Nigeria's telecom sphere, Interswitch intends to utilize existing
infrastructure to offer value-added services to market segments typically
neglected by primary telecom providers.
This strategic move
coincides with a pivotal moment for Nigeria's telecommunication sector, which
has seen its first downturn in growth in over half a decade, a situation caused
by dwindling foreign investments and curtailed capital spending by established
telcos.
In an effort to
revitalize the industry, the NCC issued 25 MVNO licenses in 2023, with the goal
of fostering robust competition and encouraging innovation in the marketplace.
By: Nana Appiah Acquaye
