Rédaction Africa Links 24 with Guardian Nigeria
Published on 2024-02-21 03:05:18
There are about 43 companies licensed by the Nigerian Communications Commission (NCC) to provide Mobile Virtual Network Operations (MVNO) in Nigeria. These companies have been advised not to focus solely on voice and data services for revenue generation, but also to develop niche operations. This advice comes in the wake of an MVNO conference organized by Wireless Technology Labs (WTL) in Lagos.
The experts who spoke at the forum emphasized that MVNO licensees would need to offer a variety of value-added services (VAS) that are not currently being offered by the mobile network operators (MNOs). According to these experts, many Nigerians are already subscribed to voice and data services from the MNOs and may not be interested in changing to MVNOs for the same services.
The MVNOs are expected to start rolling out their services soon and will ride on the existing infrastructure of the MNOs. This means that the operators will not need to make investments in their own infrastructure but will leverage existing facilities across the country to provide services.
During the conference, the Chief Executive Officer of WTL, Satya Mekala, highlighted that MVNOs in other countries became profitable by offering VAS, not from data or voice services. He noted that MVNOs have the advantage of offering services in various areas of the economy, including education, agriculture, and rural development. Mekala emphasized that MVNOs can make a lot of money from VAS, while mobile operators are not focusing on this because they are already making significant profits from voice and data services.
Himmat Gill, Vice President of TecnoTree, added that market differentiation can serve as a potent strategy for MVNOs to overcome the challenges of low revenue and competition from MNOs. By distinguishing themselves from competitors, MVNOs can attract and retain customers.
Andriy Zhylenko, CEO of Portaone, listed three areas and seven specific steps that can aid MVNO licensees in service delivery. These areas include finding a customer segment, providing a better customer experience, and maximizing profits. He also emphasized the need for MVNOs to have a unique business plan, offer solutions for growth beyond data and minutes, bundle third-party services, use in-house low code automation, implement an agile network, empower customers through self-care, and take advantage of the Internet of Things (IoT) market growth.
The global MVNO market size is projected to rise from $67.54 billion in 2020 to $123.40 billion in 2028, with a compound annual growth rate (CAGR) of 7.9% during the forecast period. As of June 2014, there were 943 MVNOs and 255 MNO sub-brands active worldwide, hosted by MNOs. This represents a total of almost 1,200 mobile service providers worldwide hosted by MNOs.
The MVNO conference brought to light the potential for MVNOs in Nigeria to capitalize on niche operations and value-added services, rather than relying solely on voice and data services for revenue generation. As the MVNOs prepare to launch their services, they have been encouraged to focus on market differentiation, customer experience, and innovation to ensure their success in the competitive telecommunications landscape.
