A Mobile Virtual Network Operator (MVNO) is a wireless communications service provider that does not own the wireless network infrastructure over which it provides services to its customers. 

 

The MVNO owns and manages the customer through targeted mobile product/service offerings under its own brand.

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The MVNO decides on the airtime/data bundle top-up charges to its customers based on its insight into the airtime/data usage/buying behaviour of its customers.

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The MVNO is in charge of marketing, distribution, customer insights and the customer relationship.

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The MVNO generates revenue from the sale of 24-month contracts (portion of mobile phone/airtime/data over 24 months) and from top-up airtime and data sales.

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BACKGROUND

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Research illustrates that we are slowly moving from away an era where the telecom industry was focused on infrastructure deployment in order to cover our biggest community: the world.

 

While doing so, the market only offered a “one size fits all” portfolio to the end-customers. Now that most of the countries are connected, it is time to match customer-specific demands and to go deeper in the value proposition.

 

In the era we are entering, the telco market can only grow by bringing more value to each community, by offering community-based services to each segment.

 

Examples are already there: Big operators now target large communities like youth or movie-savvy customers (with Netflix included in the bundle), and some operators are specialized in expatriates, cross-border tourism, ethnic segments, business travellers and more. hy? Because community-based services enhance people’s lives, bringing individuals closer to their relatives, friends and co-workers.

 

MVNOs were originally invented to extend mobile network operators (MNOs) capacity to sell plain services.

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MVNOs built up-to-date technical infrastructures and, therefore, are more agile. For this reason, MVNOs are now best positioned to address some specific communities’ needs and deliver segmented services to niche market verticals.

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To take advantage of this era of community-based services, MNOs need MVNOs to target more communities.

 

AFRICA MOBILE UNIQUE SELLING PROPOSITION IN THE TELCO SPACE

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Africa Mobile has identified a space within the greater mobile telecoms market that is largely untapped and wants to offer this market access to quality and accessible telephony products.

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Africa Mobile is specific in terms of its target market. Lower LSM; higher risk clientele that want to own a tier one and two brand mobile device and have an airtime contract (Hybrid Contract), that gives them guaranteed airtime and data per month for a 24-month period, but the freedom to load extra should they go over that allocation. 

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These clients are largely excluded from obtaining a mobile contract of any sorts due to being credit adverse.