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Nigerian MVNOs are on the rise

New MVNO - Univasa

Providing advice to one of the recently licensed MVNOs in Nigeria, Ben Adeniyi, CEO of Univasa, shares his views and focuses for the coming months.

About the Nigerian market:

The Nigerian MVNO market has been steadily growing in recent years, presenting both challenges and opportunities for industry players. With a population exceeding 200 million people and a rapidly expanding mobile subscriber base, Nigeria offers a fertile ground for MVNOs to thrive. However, the market is also highly competitive, dominated by established MNOs with extensive infrastructure and brand recognition. Despite this, the MVNO landscape in Nigeria is evolving, driven by factors such as regulatory reforms, technological advancements, and shifting consumer preferences. Aspiring MVNOs are drawn to the market's potential for innovation, particularly in areas such as digital financial services, IoT connectivity, and tailored niche offerings. Furthermore, partnerships between MVNOs and established players in sectors like banking, retail, and entertainment are becoming increasingly common, enabling MVNOs to leverage existing customer bases and distribution channels. In conclusion, despite persistent challenges, the Nigerian MVNO market offers a promising landscape for growth and innovation in the telecommunications sector. This is particularly evident with the recent allocation of 43 licenses by the Nigerian Communications Commission last year.

Untapped B2B opportunities

Regarding B2B MVNO models, there is growing interest among industry players, attracting both existing MVNOs aiming to penetrate new customer segments and newcomers exploring these opportunities. The B2B market offers significant avenues for revenue growth and expansion for MVNOs. Their adaptability, close proximity to customers, and digital expertise position them as ideal partners for swiftly digitizing enterprises and SMEs. However, prospective entrants into this market must be aware of and equipped to address the distinct needs of business clientele.

The SMEs and enterprise market often receive inadequate attention from operators. One reason telcos tend to overlook enterprises is due to their unique needs. Enterprises require seamless integration with their operations, whether in FinTech, CRM, or ERP. They expect telcos to understand and cater to their specific language and requirements. Hence, telcos must establish partnerships covering a wide range of enterprise needs, according to Ben Adeniyi, CEO of Univasa.

At the right time, in the right place

Nigeria boasts a vast market in terms of numbers, with major MNOs already deeply entrenched. Consequently, the focus of Univasa lies primarily on the realm of B2B MVNOs. Previously, Univasa engaged in B2B transactions, collaborating with banks and student groups. Recognizing a demand, they provided staff with Close User Group bundles, offering free calls, data, and SMS limits for bank employees. Additionally, in collaboration with the manufacturing and industry sectors, they plan to integrate their SIM into IoT devices, facilitating connectivity within this sector.

Ben highlights that one area worth exploring in transitioning from fixed to mobile is enterprise usage. Many enterprises heavily rely on fixed networks, incurring significant costs. An MVNO can introduce Customer Premise Equipment (CPE) to convert analog signals to Voice over IP (VoIP). By providing staff with SIM cards, they can answer calls through a VoIP app and receive calls on IP phones while in the office. This transition presents another potential segment for MVNOs to consider.

What is in store for the future?

We are eagerly anticipating upcoming announcements and are thrilled about the ongoing work within the Univasa team. Stay tuned for the exciting updates coming soon.

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