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Kenya Towards Mobile Virtue Network Operator: Opportunities and Challenges

Received: 26 August 2016     Accepted: 5 September 2016     Published: 27 December 2016
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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.

Published in Advances in Networks (Volume 4, Issue 2)
DOI 10.11648/j.net.20160402.14
Page(s) 45-51
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2016. Published by Science Publishing Group

Keywords

Equitel, MNO, MVNO, Regulator, Telecommunication

References
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  • APA Style

    Tirus Muya Maina, Charity Mweru Maina. (2016). Kenya Towards Mobile Virtue Network Operator: Opportunities and Challenges. Advances in Networks, 4(2), 45-51. https://doi.org/10.11648/j.net.20160402.14

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    ACS Style

    Tirus Muya Maina; Charity Mweru Maina. Kenya Towards Mobile Virtue Network Operator: Opportunities and Challenges. Adv. Netw. 2016, 4(2), 45-51. doi: 10.11648/j.net.20160402.14

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    AMA Style

    Tirus Muya Maina, Charity Mweru Maina. Kenya Towards Mobile Virtue Network Operator: Opportunities and Challenges. Adv Netw. 2016;4(2):45-51. doi: 10.11648/j.net.20160402.14

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  • @article{10.11648/j.net.20160402.14,
      author = {Tirus Muya Maina and Charity Mweru Maina},
      title = {Kenya Towards Mobile Virtue Network Operator: Opportunities and Challenges},
      journal = {Advances in Networks},
      volume = {4},
      number = {2},
      pages = {45-51},
      doi = {10.11648/j.net.20160402.14},
      url = {https://doi.org/10.11648/j.net.20160402.14},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.net.20160402.14},
      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.},
     year = {2016}
    }
    

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  • TY  - JOUR
    T1  - Kenya Towards Mobile Virtue Network Operator: Opportunities and Challenges
    AU  - Tirus Muya Maina
    AU  - Charity Mweru Maina
    Y1  - 2016/12/27
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    N1  - https://doi.org/10.11648/j.net.20160402.14
    DO  - 10.11648/j.net.20160402.14
    T2  - Advances in Networks
    JF  - Advances in Networks
    JO  - Advances in Networks
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    PB  - Science Publishing Group
    SN  - 2326-9782
    UR  - https://doi.org/10.11648/j.net.20160402.14
    AB  - 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.
    VL  - 4
    IS  - 2
    ER  - 

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Author Information
  • Senior Information and Communication Technology Technologist II, Information and Communication Technology Directorate, Murang’a University College, Murang’a, Kenya

  • Information and Communication Technology Officer, Library and Learning Resource Services, Technical University of Kenya, Nairobi, Kenya

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