Nigerian fintech giant, Interswitch, has acquired a Tier 5 Mobile Virtual Network Operator (MVNO) license for $1.1 million from the Nigerian Communications Commission, NCC, through Systegra Technologies, an Interswitch subsidiary, in May 2023.
This now means that Interswitch can provide Nigerians with affordable 4G/5G services by using the already installed infrastructure of major telephone companies. The fintech would also be able to provide these services in rural areas.
Recording a $42 million revenue in the last fiscal year, the tech giant is sizing up a profitable virtual telecommunications model that would merge payments and telecom services for Business-to-Business (B2B) and consumers.
Interswitch started using MVNO licenses in 2023 and is among 25 companies to have jumped at this opportunity.
Though they don’t have the infrastructure of major telephone companies like MTN and Airtel, MVNOs offer services comparable to them. The goal is to increase broadband penetration to 90% by 2025, though the penetration dipped from 45% to 41% according to recent reports, due to a population adjustment.
