0 7 min 5 mths

Kenya and South Africa presents most developed MVNO markets in terms of penetration of mobile subscriptions being served by MVNOs respectively. Niche and retail MVNO business models are the most prevalent in Africa. Throw light on how the MVNOs are faring in Africa in terms of both supply and demand. The PESTLE analysis of the external environment of the MVNOs industry in Africa is included with regulations and policies adopted by the African governments for the MVNOs to enhance their market penetration.

Mobile Virtual Network Operators have become popular globally. However, their presence is still limited in the African region. Kenya and South Africa are currently the most developed MVNO markets in terms of market reach in the region. The growing population of the region coupled with increasing mobile penetration and data usage is expected to drive growth of MVNOs within the African telecommunication industry. In addition, the introduction of mobile financial services and efforts by regulators to establish legal frameworks specific to MVNOs are governing factors which will decide the future of MVNOs in Africa.

Research shows that the African consumers are not very accommodating in their choice of operator. This is a challenge for the MVNOs as they are already behind in the battle of market shares. Research insights state that the niche and retail MVNO models are more preferred by the African customers. For instance, it was found that when Equitel launched its MVNO in Kenya it was very well received and successfully installed. The trend is inclining towards businesses which come up with niche and dedicated models and products.

There will be more MVNO activity in the African region as there would newer players bringing in new and diverse market strategies. It is projected that unique marketing and advertising strategies might prove disruptive and lead to high competition in the market.

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