Africa MVNO Market and Competitive Analysis 2011

Africa has surpassed 50% mobile user penetration. However, in most countries, the most of the population (roughly 50 percent) is below 19 and therefore has little or no “purchasing power”, representing a limitation towards full market penetration. The youth market segment represents a latent subscriber base in every Sub Saharan country. The potential for MVNOs exists in both in this latent market and the mainstream body of users among whom segmentation has not been fully realized.

This report sets a context for potential MVNO operations and analyzes potential opportunities and limitations within the African market. It also presents a regulatory framework “barometer” for the following African countries; Algeria, Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Djibouti, Egypt, Equatorial Guinea, Eritrea, Ethiopia, Gabon, Gambia, Ghana, Guinea, Guinea-Bissau, Kenya, Lesotho, Liberia, Libya, Madagascar, Malawi, Mali, Mauritania, Mauritius, Morocco, Mozambique, Namibia, Niger, Nigeria, Rwanda, Senegal, Seychelles, Sierra Leone, Somalia, South Africa, Sudan, Swaziland, Tanzania, Togo, Tunisia, Uganda, Zambia and Zimbabwe. The “barometer” indicates; the National Regulatory Authority name and website, the current legislation on MVNOs, mobile penetration and subscriber base statistics. In some case, particular recommendations are made about the suitability of a market for MVNO operations.

Definitions of various MVNO models and their attendant degrees of risk are assessed. Four currently-operational African MVNOs (Virgin Mobile South Africa, Econet, Touba Mobile and Red Bull) are examined to determine their niche markets, “selling points” and emerging challenges to their long-term success. The role of service plans, tariffs, average revenue per user, value added services, and technology platform (2G/3G) has been assessed to determine the interplay of variables necessary to implement a successful MVNO model in an African market.