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MVNOs to Expand Reach in Africa by Capitalizing on Core Competencies

• Kenya and South Africa presents most developed MVNO markets in terms of penetration, with 3.5% and 1.6% of mobile subscriptions being served by MVNOs at end of 2015, respectively.
• Niche and retail MVNO business models are the most prevalent in Africa, accounting for 35% and 20%, respectively

Ken Research announced its latest publication on, “MVNOs in Africa: MVNOs Gaining Momentum by Capitalizing on Niche Segments”, which throws light on how the MVNOs are faring in Africa. The publication includes an overview of the MVNOs industry in Africa in terms of both supply and demand. The status of MVNOs Industry in Africa is also detailed upon in the research report. The PESTLE analysis of the external environment of the MVNOs industry in Africa is included in the report. Furthermore, the research also includes the regulations and policies adopted by the African government 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. As of 2015, 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.

Research has revealed that by the end of 2020, 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.

Some of the factors governing growth in this industry include-:
• Favorable regulatory policies
• Growing interest in MVNO capabilities
• Aggressive research and marketing by Operators

Key Topics Covered in the Report:
– Key concepts regarding MVNO definition
– Primary business models in the MVNO market
– Global and regional market context
– MVNO market statistics worldwide
– Regulations and policies in the MVNO market
– Case studies of businesses in MVNO market in Africa
– Key findings and recommendations

To know more on coverage, click on the link below:

Ken Research
Ankur Gupta, Head Marketing & Communications

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