Interswitch Gets Ready to Shake Up Nigeria's Telecom Market

2025-01-03

Interswitch Gets Ready to Shake Up

Nigeria’s leading financial technology company, Interswitch, is making a bold move into the telecom industry. The company has secured a license from the Nigerian Communications Commission (NCC) to operate as a Mobile Virtual Network Operator (MVNO). This means that Interswitch will be able to offer mobile phone services to Nigerians, leveraging the existing infrastructure of the four major telecom companies in the country: MTN, Airtel, Glo, and 9Mobile.

Interswitch’s entry into the telecom market is a significant development for Nigeria. The company’s goal is to provide telecom services to underserved regions in the country that currently lack adequate infrastructure. By leveraging existing infrastructure, Interswitch can avoid the high costs associated with building its own network. This could lead to more affordable mobile phone services for Nigerians in these areas.

The NCC has been issuing MVNO licenses in recent years in an effort to bridge the gap between the underserved and unserved areas and populations. MVNOs are a type of telecom service provider that does not own its own infrastructure. Instead, they rely on the infrastructure of existing telecom providers to deliver their services.

There are currently 23 companies that hold MVNO licenses in Nigeria. This is in line with the objectives of the Nigeria National Broadband Plan (NNBP 2020-2025), which aims to achieve a 90% broadband access rate by 2025. However, as of January 2024, broadband access in Nigeria has declined to 40.85%.

Interswitch’s entry into the market comes at a time when Africa’s leading telecom firm, MTN Nigeria, is facing challenges. The company recently reported a significant foreign exchange loss, which has negatively impacted its performance.

What Undercode Says: Analysis

Interswitch’s move into the telecom market is a positive development for Nigeria. The company’s focus on underserved regions could help to close the digital divide in the country. Additionally, MVNOs can introduce competition into the market, which could lead to lower prices and better services for consumers.

However, there are also some challenges that Interswitch will need to overcome. The company will need to develop a strong marketing strategy to differentiate itself from the existing telecom providers. Additionally, Interswitch will need to ensure that it has good relationships with the existing telecom providers in order to access their infrastructure.

Overall,

Conclusion

The Nigerian telecom market is about to become more competitive. Interswitch’s entry into the market could lead to lower prices, better services, and more innovation. This is good news for Nigerian consumers.