Kenya Towards Mobile Virtue Network Operator: Opportunities and Challenges

Abstract

This paper points to the necessity to conduct research on Kenya towards Mobile Virtue Network Operator in regard to Opportunities and challenges. The telecommunication and financial business model is shifting away from full vertical integration of the operator’s value chain towards a higher level of specialization. Thus the threshold of becoming a mobile operator is dramatically reduced with the introduction of the MVNO’s concept. It is possible to be an operator without having to invest in frequency spectrum license or in wireless network infrastructure and without having to build up competence in wireless technologies. The regulators have applauded the new players because they want to enhance competition for the benefit of the customers. MNOs use underutilized spectrum in various service provisions bringing in specialization in areas such as data and mobile money. Business competition makes the consumers enjoy benefits from low fees in mobile money, text and voice services. Kenya lack of legal provision for infrastructure sharing, leaving the operators to consent to autonomous agreements with interested parties. Issues raised by MNO include Cannibalization of the MNOs market share by MVNOs, Hostile response from poor MVNO performance, unfriendly choice of MVNOs for partnering purpose. The purpose of the regulator should be increased competition in the mobile communications market, financial and quickening the improvement and the development of new services and technical innovations. Therefore, the entry of MVNOs into the market should be seen as an opportunity that will increase the uptake of mobile services in key segments such as mobile commerce, finance, voice and data