More than 2 000 mobile virtual network operators (MVNOs) operate across almost 100 markets worldwide, yet the GSMA found only 65 MVNOs in Africa, according to a 2025 report. The model — where non‑network companies resell mobile services by partnering with established operators — is widely regarded as a way to expand choice, lower prices and develop services targeted at underserved groups. But regulatory uncertainty and reluctance from mobile network operators are keeping the model underdeveloped on the continent.
How MVNOs work and why they matter
MVNOs do not build radio networks. Instead they use licensed operators’ infrastructure to provide retail services to customers. That structure lets them focus on product design, distribution and customer service while the host operator manages the network. The GSMA report highlights two clear wins: operators can monetise spare network capacity through wholesale agreements, and consumers gain access to more specialised, often cheaper, packages.
- Consumer benefits: more choice, niche pricing and services tailored to young, mobile‑first users and underserved segments.
- Operator benefits: new wholesale revenue streams and better utilisation of existing network assets.
- Economic impact: potential for new jobs in retail, digital services and distribution, and for smaller businesses to access affordable connectivity.
“piggyback”
The report notes the simplicity of the technical model: MVNOs effectively "piggyback" on existing networks rather than constructing costly infrastructure. In practice, however, the policy and commercial pathways from idea to launch vary widely across countries — and that variation is a major part of the problem.
Regulatory fragmentation and cost hurdles
Regulation differs sharply across African markets. South Africa is one example where, under current rules, a dedicated MVNO licence is not required because the businesses do not deploy infrastructure. By contrast, Nigeria implemented a specific MVNO licensing framework in 2022. The Nigerian Communications Commission set licence costs that, when converted, range roughly from R400 000 to R6 million — creating a material upfront expense for prospective entrants.
Such divergent treatment creates uncertainty for entrepreneurs and investors. In conversations with would‑be MVNO founders from countries including Tanzania, Kenya, Zambia and Angola, the most frequent stumbling blocks were unclear or costly regulatory requirements and difficulty securing wholesale agreements with established operators.
| Metric | Figure |
|---|---|
| MVNOs globally | 2 000+ |
| Markets worldwide | ~100 |
| MVNOs in Africa | 65 |
| Nigeria licence cost (approx.) | R400 000–R6 million |
Why operators hesitate
Incumbent mobile network operators weigh the upside of incremental wholesale revenue against risks: potential margin erosion in retail, operational complexity and the need to create robust commercial frameworks that protect network integrity and customer experience. Where operators are cautious or require onerous commercial terms, entrepreneurial MVNO plans frequently stall.
For South African households, a broader MVNO market could translate into pressure on retail prices and more imaginative bundle designs — for example, affordable unlimited data for essential apps, or micro‑bundles aimed at small traders and gig workers. For the mobile industry, MVNOs offer a way to segment customers more finely and to pursue growth without heavy capital outlay.
Policymakers who want to encourage MVNOs face a balancing act: put in place clear, predictable rules that lower entry barriers while ensuring consumer protection and fair wholesale terms. The GSMA data suggests there is room for regulatory harmonisation and for negotiated frameworks that give both operators and new entrants a stake in growth.
Ultimately, realising the potential of MVNOs in Africa is not just about telecoms policy. It affects household budgets, the ability of small businesses to connect affordably, and the pace at which digital services — including mobile financial services — can reach the continent’s fast‑growing, youthful population. For now, the technical model is proven; whether Africa scales it will depend on policy clarity and commercial will.
WE NEWS does not provide financial advice.
