VAS2Nets, a Nigerian technology firm has joined forces with Telness Tech, Lebara and Procescom to establish a new Mobile Virtual Network Operator (MVNO) in Nigeria. This initiative brings a fresh entrant to the rapidly evolving Nigerian telecommunications market, leveraging cutting-edge technology and a globally recognized brand.
A Growing Market Ripe for Innovation
Nigeria, Africa’s largest economy by GDP, has one of the most dynamic mobile telecommunications sectors on the continent, with over 220 million active mobile subscriptions as of 2024. Despite this scale, mobile internet penetration stands at around 41.56%, highlighting both challenges and opportunities for growth
The MVNO model, which allows operators to offer telecom services without owning the underlying infrastructure, remains in its infancy in Nigeria. However, with the increasing demand for affordable and tailored telecom solutions, there’s a growing recognition of the model’s potential. This launch positions VAS2Nets, Telness Tech, and Lebara as key players in shaping this new frontier.
VAS2Nets is one of the 46 companies granted mobile virtual network operator (MVNO) licenses in Nigeria. The NCC introduced the MVNO licensing framework in August 2022 to diversify the market by introducing competition, innovation, and more affordable services for underserved demographics.
A High-Impact Collaboration
This ambitious project unites some of the most prominent players in the global telecom industry.
- Telness Tech, known for its cutting-edge, fully automated platform, will provide the Operations Support Systems (OSS) and Business Support Systems (BSS) necessary for seamless operations and exceptional customer experience.
- Lebara, a globally recognized MVNO operating in multiple European countries, is extending its reach to Nigeria, a significant step in its international expansion.
- VAS2Nets, a prominent Nigerian technology firm, will lead the initiative, leveraging its local expertise to coordinate the efforts of all partners.
- Procescom will contribute critical mobile core infrastructure to ensure the network operates efficiently and reliably.
Martina Klingvall, CEO of Telness Tech, emphasized the significance of this collaboration, stating:
“”This international partnership allows us to bring our cutting-edge telecom technology to Nigeria and is an important step in Telness Tech’s rapid international expansion, following our recent entry into the U.S. market. To enable such a massively recognized brand as Lebara to enter yet another market, combined with our advanced technology and VAS2Nets local expertise – will bring a world class service that to Nigeria’s digital population.”
Transforming Nigeria’s Telecom Market
The launch will introduce both prepaid and postpaid mobile services, catering to the diverse needs of Nigerian consumers. Future plans include integrating PBX solutions, further enhancing the operator’s offerings. This move marks one of the first major entrants into Nigeria’s telecom market in years, promising to set new standards in affordability and quality.
Teniola Stuffman, Group Executive Director of Business Development at VAS2Nets, remarked:
“This project enables us to offer Nigerians a high-quality, affordable mobile service through the combined expertise of VAS2Nets, Telness Tech, and Lebara and Procescom. Enabling us to deliver one of the first new mobile operators in Nigeria in years, and with the best technology and offerings on top of that. Rest assured, we’re very proud to lead this joint endeavour”
Challenges and Competition
While the opportunity is immense, the Nigerian telecom landscape is highly competitive. Market leaders like MTN Nigeria, Airtel Africa, Globacom, and 9mobile dominate, with MTN holding the lion’s share of over 40% of subscriptionsThese operators have significant infrastructure investments and established customer bases, making the entry of a new MVNO challenging.
Moreover, the success of MVNOs in Nigeria has been limited, with no significant players currently dominating this space. VAS2Nets and its partners will need to differentiate themselves by offering superior customer experiences, innovative service packages, and competitive pricing to carve out a niche in this crowded market.
The Future of MVNOs in Nigeria
The Nigerian Communications Commission (NCC) has shown interest in creating a favourable environment for MVNOs, recognizing their potential to increase competition and drive innovation. This supportive regulatory framework bodes well for the success of new entrants like the VAS2Nets-led MVNO.
Daniel Upson, Director of Partnerships at Lebara, summed up the potential of this venture:
“I’m extremely excited about combining all of these capabilities together, between our brand, Telness Tech’s technology and VAS2Nets local expertise, I believe we will deliver a truly world class experience for mobile consumers in Nigeria.”
Bridging the Digital Divide
The new MVNO is poised to address a critical need in Nigeria’s telecom industry: accessible, high-quality mobile services. By introducing competitive pricing, innovative technology, and a customer-focused approach, the collaboration aims to empower millions of Nigerians with improved connectivity and digital services.
As the service goes live, it promises to redefine mobile connectivity in Nigeria, setting a benchmark for future developments in the industry.
