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Africa: Companies hope to become MVNOs Print E-mail
Thursday, 09 November 2006
A variety of companies, ranging from retailers to food producers, intend to become mobile virtual network operators (MVNOs) in Africa.

Becoming a MVNO can contribute significant revenue to firms with well-known brand names, while allowing network owners to sell capacity for little commercial and marketing cost. The impact of MVNOs is growing in Europe and North America. For instance, supermarket operator Carrefour in France is now offering mobile services. British MVNO Virgin Mobile launched in South Africa this year.

In West and North Africa, several companies are preparing for launch MVNOs, said Philippe Vigneau, from French virtual mobile network firm Transatel.

"There are about two to three companies per country that want to be an MVNO within the next two years…In West Africa, for example, there is strong potential for food companies with well-known brands," Vigneau said.

Mobile operators welcome the development as a new avenue to increase network traffic at a low cost.

"Operators, especially new third-placed entrants, need to find ways to reach new subscribers quickly and the big obstacle is commercial and marketing costs," Vigneau added.

Another option could involve African mobile operators launching MVNOs in European countries with large expatriate communities. For example, Algerians or Moroccans living in France could be offered cheap calls to Algeria and Morocco.

MNVOs operate in countries with some degree of telecom market liberalisation. As the liberalisation of African mobile markets spreads, so too should attempts to develop the MVNO business model in Africa.

Source: Reuters - WDR/Intelecon Regulatory News