MVNO Business Model

There are 4 different kinds of business models in the MVNO market (figure below):
• Branded Reseller: light model – only brand and possibly distribution channels
• Light-MVNO: intermediate model – marketing and sales; possibly control of back office and value added-services
• Full-MVNO: complete model – the operator only provides network access and possibly part of the core network
• MVNE (Network enablers): 3rd party provider of infrastructure – positioned between MVNO and operator

MVNO business models Source: http://mvnoafrica.wordpress.com/2012/10/22/mvno-mobile-virtual-network-operator/

MNO, non-telecom companies and investors can extract value from MVNO business model. Telecom companies use it to penetrate niche segments

For now, infrastructure sharing and network outsourcing is becoming a preferred option for operators.
Since 2012, in an ever more maturing market , African telcos are focusing on cost control.
For that, they are outsourcing networks, security, maintenance and back office functions. Inescapably, the downside is smaller margins.
The sharing of infrastructure is also widely used. In the same cost cutting optic, it is fairly common for operators to share towers with competitors; although it is mostly done because of a pressure from the regulator.
An important part of the 170 000 towers in the continent are being shared through different types of agreements: joint ventures, operate and maintenance deals, asset sale and co-location rights. All these cooperation models have released value for the operators, reduced operations and capital costs. This “discharge” allows telcos to focus on the commercial side of the business.

Therefore, questions are being raised over the durability of the actual business models and their capacity to keep being able to fund the necessary levels of network investment in order to expand