The Nigerian Communications Commission (NCC) has suspended the issuance of communication licenses for the following three categories which includes Mobile Virtual Network Operator (MVNO), Interconnect Exchange, and Value Added Service Aggregator.

The Commission announced this on Friday in a public notice issued by its Mr. Reuben Muoka the Director of Public Affairs. But Mr. Muoka in his notice stated that the suspension will takes effect from May 17, 2024, and its temporary.

Which means that no company will be able to apply for a new license in any of the three affected categories until the suspension is halted or ends. According to NCC, the suspension is in line with its powers under the Nigerian Communications Act (NCA) 2003 to grant and renew licenses, promote fair competition, and develop the communications Industry.

But however, the commission noted that all pending applications for the same license would still be considered and treated accordingly.

Detailing the need for the suspension, NCC in the public notice said,

“This temporary suspension is necessary to enable the Commission to conduct a thorough review of several key areas within these categories, including the current level of competition, market saturation, and current market dynamics.

“The public is invited to note that during the suspension period commencing on 17th of May, 2024, new applications for the aforementioned licenses will not be accepted. This is without prejudice to pending applications before the Commission which will be considered on its merits.”

What to Know

An interconnect exchange, or clearinghouse, in Nigeria’s telecommunications industry, is a central exchange where calls from different mobile network operators are connected, billed, and reconciled. Currently, 37 companies are operating in the interconnect space in Nigeria.

The MVNO licence is the newest category of licensed introduced by the NCC. As of the last count, 43 companies have been licensed to operate in the five tiers of the licence. However, none of them has rolled out service yet.

An MVNO is a telecommunications product and service operator that rides on top of the infrastructure capacity of a fully licensed mobile telecommunication service provider or mobile network operator (MNO). This means that the operators will not need investments in their infrastructure but leverage existing facilities across the country to provide services.

The entrance of MVNOs into the Nigerian telecom market is expected to provide competitive offerings and lower the costs of calls and data for subscribers.

Tesla is on the verge of finalizing plans to power the global development of its self-driving system using data from China that could be processed within the United States, according to sources familiar with the matter. This marks a significant strategic shift by CEO Elon Musk, as the company aims to leverage Chinese data to advance its autonomous vehicle technology.

In an effort to enhance its self-driving capabilities, Tesla has been developing plans to establish a data center in China to train the algorithms required for fully autonomous vehicles. This initiative, confirmed by two anonymous sources, reflects the company’s push to secure approval from Chinese regulators to transfer data generated by its electric vehicles (EVs) in China out of the country for its “Full Self-Driving” (FSD) system.

While it remains uncertain whether Tesla will proceed with both options—transferring data internationally and setting up a local data center—the company appears to be hedging its bets by exploring parallel plans.

Tesla’s efforts underscore the urgency of its pivot towards artificial intelligence breakthroughs amid slowing EV demand and intensifying competition. The push to utilize data from Chinese vehicles comes as the U.S. government tightens restrictions on transferring AI technology from American firms to China.

Currently, Tesla is unable to offer the full version of FSD, which costs nearly $9,000, in China. Expanding the market for FSD in China could significantly boost Tesla’s revenue and profits, especially as it faces mounting pressure from Chinese rivals such as BYD.

To establish a data center in China for FSD development, Tesla would need to collaborate with a Chinese partner, according to two sources. This partnership may also present hardware-sourcing challenges.

Tesla’s campaign to harness more data from China accelerated during Musk’s recent whirlwind trip to Beijing, where he met with top officials, including Premier Li Qiang. During this meeting, Musk sought to expedite permissions for Tesla’s data transfer and discussed the possibility of investing in a data center in China.

Additionally, Musk explored the potential of licensing Tesla’s FSD systems to Chinese EV manufacturers. In April, Musk mentioned ongoing talks with another “major” automaker about FSD licensing, though he did not disclose the name.

“It would definitely be a milestone for Tesla if it rolls out FSD in China and leverages the China data for algorithm training,” said Yale Zhang, managing director at Shanghai-based consultancy Automotive Foresight. “China played a key role in scaling up EV production for Tesla with the Shanghai factory. It would again serve a significant part in scaling up mass adoption of autonomous driving technologies,” he added.

Toyota Motor has been compelled to suspend production twice in two months at its plant in Tijuana, Mexico, due to local labor shortages impacting output at its suppliers. The production halts occurred in February and March, reducing the output of the Tacoma pick-up truck. These disruptions highlight potential bottlenecks for the world’s leading automaker, which has plans to produce 10 million vehicles this year.

Documents reviewed by Reuters, along with insider reports, confirm that Toyota halted production for a total of 19 days during this period. Besides labor shortages, technical issues at the plant also contributed to the stoppages.

To address the strain, Toyota is collaborating with some suppliers, though many parts makers are struggling to maintain production due to the worker shortage. This situation presents yet another challenge for the Japanese manufacturing giant, which is already grappling with the fallout from a safety test certification scandal at its subsidiary Daihatsu and governance issues at two other group companies.

These scandals have led Toyota to delay the start of electric vehicle (EV) production in the United States by six months, pushing the new timeline to around June 2026. This delay, previously reported by Japanese media, compounds the company’s difficulties as it navigates supply chain disruptions and strives to meet increasing demand for its vehicles.

Toyota Motor North America, the automaker’s subsidiary, continues to experience intermittent production delays due to these supply chain issues. A Toyota spokesperson stated, “To minimize the impact, our teams are working diligently to do everything possible to lessen the inconvenience to our customers.”

In a letter to its North American supplier network in late April, Toyota acknowledged the “frequent production halts” causing “inconvenience and concern.” The letter noted that regular employee turnover at some suppliers had led to a decline in skills, while production capacity had decreased due to issues with personnel, equipment, and material supply.

These supply-chain problems help explain some of Toyota’s recent difficulties in the United States, even as the company sees increased demand for vehicles, particularly hybrids. Toyota is expected to start selling a hybrid version of the Tacoma in the United States this year, indicating a continued focus on meeting consumer demand despite the operational challenges.

The labor shortages and subsequent production halts at the Tijuana plant underscore the broader issue of workforce instability in the manufacturing sector, particularly in regions with high turnover rates.