After closing ₦500m licensing deal, Lebara Nigeria ready to launch ‘affordable’ MVNO service, VAS2Net says

Lebara Nigeria, a mobile virtual network operator (MVNO) due to launch in the country following a brand licensing deal with Europe’s Lebara, is betting on delivering affordable service in the country, VAS2net Technologies Limited, promoters of the mobile service has said.

Nigeria has awarded 45 MVNO licences before the nation’s telecoms regulator recently suspended issuance of licences across three telecoms service categories including MVNO after the Nigerian Communications Commission (NCC) cited market saturation among the factors that informed the freeze.

Meanwhile, VAS2nets Technologies Limited, the last-known MVNO licensee that shelled out ₦500 million for its 10-year licence in March before the telecoms regulator froze further licensing in the category, has partnered with Lebara, one of Europe’s MVNO pioneers, to launch the Lebara Nigeria brand.

For Lebara Mobile, the alliance with Nigeria’s VAS2nets will drive forward the European MVNO’s African expansion plan starting with the continent’s telecoms powerhouse, Nigeria.

For Lebara Mobile, the alliance with Nigeria’s VAS2nets will drive forward the European MVNO’s African expansion plan starting with the continent’s telecoms powerhouse that is home to over 219.3 million active phones; 164.3 million internet and 94.3 million broadband connections respectively as of March, 2024, according to official telecoms market information.

Lebara 'aims to revolutionise the Nigerian mobile market'

For Lebara Mobile, the alliance with Nigeria’s VAS2nets will drive forward the European MVNO’s African expansion plan starting with the continent’s telecoms powerhouse that is home to over 219.3 million active phones; 164.3 million internet and 94.3 million broadband connections respectively as of March, 2024, according to official telecoms market information .

The European MVNO announced on LinkedIn that it “is pleased to announce its expansion into Africa through a strategic brand licensing partnership with Vas2nets Technologies in Nigeria. This development marks a significant milestone for Lebara, broadening its global footprint. With a commitment to affordability, reliability, and customer satisfaction, Lebara aims to revolutionise the Nigerian mobile market, offering smarter value and service.”

Lebara Mobile, which was founded in 2001, is one of Europe's fastest-growing mobile companies with footprints across five European markets (UK, Netherlands, Germany, France, and Denmark) accounting for over 4 million customers, including brand licensing in Saudi Arabia, Spain, Australia and Switzerland.

“We provide our customers with SIM-only monthly contracts, as well as Pay-As-You-Go, and data-only options. Our mobile plans offer some of the best rates available, including for international calling and roaming. Today we operate in five European markets (UK, Netherlands, Germany, France, and Denmark), with over 4m customers. Additionally, we have licence agreements for use of the brand in a further four global markets (Spain, Switzerland, Saudi Arabia and Australia). Since 2019 we have been owned by private equity partners Triton and Alchemy,” Lebara said on its website.

We are proud to partner with Lebara, a global leader in mobile telecommunications, to launch and operate the Lebara MVNO business in Nigeria,” Ayo Stuffman, CEO of VAS2Nets, seen in photo above. Image credit: VAS2net Technologies Limited website.

Lebara Mobile, VAS2nets Technologies’ choice of MVNO partner for its operations in Nigeria will be entering a competitive market held in firm grip of the Big Four mobile incumbents, MTN Nigeria (81,799,666), Airtel Nigeria (63,357,061), Globacom (62,191,448) and 9mobile (11,657,703), that represent a total market base of 219,005,878 out of Nigeria’s active lines totalling 219,304,281 by March 2024.

But Lebara Mobile suggests that the MVNO, which will be trading in the country as Lebara Nigeria, is not afraid of challenging “the big networks” and taking on the establishment.

“We support our customers with a reliable network offering and exceptional service, at an affordable price,” Lebara Mobile said, “all of which positions Lebara as 'the smarter way to connect'. We're always challenging the big networks, and pointing out to customers how they can get a better deal. Our brand is adapted for each country according to local needs, but we’ll always make sure people know we’re the smarter choice. You’ll find our advertising is straightforward, light-hearted, and unafraid to take on the establishment.”

"We are proud to partner with Lebara, a global leader in mobile telecommunications, to launch and operate the Lebara MVNO business in Nigeria,” Ayo Stuffman, CEO of VAS2Nets was quoted as saying following the brand licensing deal with Lebara Mobile.

“By combining our local expertise with Lebara's proven track record of success, we aim to revolutionise the mobile experience for Nigerians and drive positive change in the telecommunications industry,” according to Stuffman.

Dr Aminu Maida, Executive Vice Chairman/CEO, Nigerian Communications Commission (NCC), listed MVNO among the three licensing categories suspended by the telecoms industry regulator. Image credit: NCC.

“Mobile Virtual Network Operator (MVNO),” according to NCC “is a telecommunications product and service operator that rides on top of the capacity of a fully Licenced Telecommunications Service provider or Mobile Network Operator (MNO). The MVNO reaches a “Wholesale Agreement” or “Revenue Sharing Agreement” with the Telecommunications Company (Telco) through negotiations and delivers its services after bulk purchasing resources from the Telco. The defining difference between an MVNO and an MNO is the simple fact that an MVNO has no ownership whatsoever of spectrum elements, irrespective of its operational model.”

Nigerian Communications Commission (NCC).

Stuffman’s VAS2Nets was issued the Tier 5 category, the topmost of the 5-tiered MVNO licensing options that attracts a ₦500 million fees for the 10-year permit that will span March 1, 2024 to February 28, 2034.

According to the NCC Tier 5 MVNOs can deliver services across the four other categories of the MVNO licence. “In the simplest terms, a VO within this tier can decide the level of service it desires to offer ranging from tier – 1 to tier – 4. This gives the VO freedom of choice to deploy its services the way it deems fit if it still has a valid licence. They can engage in “Shared Rural Coverage Agreement” within underserved and unserved regions.”

Nigeria said that the MVNO licensing was developed to allow new operators that will piggyback on the networks of incumbent mobile network operators (MNOs) to enter deepent competition in the local telecoms market.

“Mobile Virtual Network Operator (MVNO),” according to NCC “is a telecommunications product and service operator that rides on top of the capacity of a fully Licenced Telecommunications Service provider or Mobile Network Operator (MNO). The MVNO reaches a “Wholesale Agreement” or “Revenue Sharing Agreement” with the Telecommunications Company (Telco) through negotiations and delivers its services after bulk purchasing resources from the Telco. The defining difference between an MVNO and an MNO is the simple fact that an MVNO has no ownership whatsoever of spectrum elements, irrespective of its operational model.”

NCC: Why we issued MVNO licences in Nigeria

The telecoms regulator said that the objectives of licensing MVNOs have been summarised below a) To give the service providers of virtual mobile communications service an opportunity to participate in the telecommunications provisioning market of Nigeria, with an emphasis on improving the telecommunication output of the country.

b) To ensure that all core stakeholders are adequately catered for and protected within a Virtual Network Operator enabled environment.

c) To allow for the Virtual Network Service to contribute to the availability and expansion of quality mobile coverage through redundant capacity utilisation, active infrastructure sharing, national roaming, and other telecommunication elements that enable it.

d) To present guidelines to which MVNO operations can flourish within the Nigerian Telecommunications market..

NCC on services to be offered by MVNO in Nigeria

According to the telecoms regulator the scope of the MVNO licensing framework detailed below expected operations of Mobile Virtual Network service providers as observed in other markets:

a) Sales and Distribution – Providing adequate SIM card sales and distribution channels, registration of subscribers, sales and distribution of devices, etc.

b) Tariff and Billing – Development of an efficient tariff structure, ensuring adequate and accurate billing systems, etc.

c) Customer Relationship Management – Provision of necessary Customer Relationship Management Systems for catering to customers and their needs, resolving issues and disputes with customers, etc.

d) Devices, Applications Services and SIM Management – Provisioning of Application and ValueAdded Services, ensuring proper SIM management operations, meeting Quality of Service (QoS) Key Performance Indicators (KPIs) with regards to VAS and related services, etc

e) International Data and Voice services.

f) Facility Management – Ensuring that devices and facilities meet the technical standards set by the Commission.

g) Core Network functions and Spectrum Access – Provisioning of network access to ensure quality delivery of mobile telecommunications services to the end users, ensure frequency standards are met for spectrum access, etc.