They have this thing they call mobile virtual network operators (MVNO) in the United States. Typically, an MVNO enters deals with a mobile network operator (say MTN, Glo, Airtel, AT&T, Verizon) and acquires bulk access to network services at wholesale rates, then resells to end users. Most MVNOs use their own customer service, billing support systems, marketing, and sales personnel. You will think they are a full network operator!
The business works this way: in January you go to MTN to buy 1 million hours of call, 1000GB of data, 1 million SMS and MTN gives you 60% discount for that bulk purchase. You then open a business like Tekedia Telecoms and resell to the end users. You differentiate via customer service, pricing innovation, etc even though the core infrastructure and networks are powered by MTN.
Can we have Tekedia Telecoms? Lol. In the US, it is largely possible. Why can’t that happen in Nigeria? Can we ask for it now? Sure, MVNO works in domains with excess capacity which may not be the case in Nigeria. Nonetheless, to deepen competition via customer service, there is an opening on that business model if the regulator approves.
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2. Click and register for Tekedia Startup Masterclass and master the secrets from start-up to unicorn. Cost is N180,000 naira or $400.
3. Click to join Tekedia Capital Syndicate and own a piece of Africa’s finest startups with a minimum of $10,000 investment.