MNOs are the digital distribution network in Africa. They’ve invested massively in laying out cables and towers, and they’ve done a great job of it. Mobile penetration is increasing across Africa, and 3G is becoming more readily available. Read the recent GSMA report if you want some more stats. With this great network, you would think they are opening it up to companies with great products, content, or services. They would be charging small tariffs on their pipes and earning revenue while their customers got better products, for cheaper. Startups and incumbent firms would be competing to offer better products to customers, at lower costs, driving the adoption of mobile phones even further, which in turn would help the MNOs earn yet more revenue. You’d think that right? That’s unfortunately not the reality. MNOs in Africa are historically a shortsighted bunch. They want to get their return through voice and sms revenue. They have not yet opened their eyes to the the huge potential of digital content in Africa.
But that is changing.
Bob Collymore, the head of Safaricom in Kenya, has said they need to be more innovative. They have an innovation fund now, and are investing in ambitious young Kenyan startups. Tigo has partnered with Jumia, and so has MTN. Jumo is partners with several MNOs. The tide is turning, and we should expect more MNOs to submit to it. It won’t be easy, but startups must keep fighting and keep pushing the MNOs for more access, insights, and APIs. This article by Abdi Latif Dahir highlights that this change is in progress, and covers a couple great examples I have mentioned before. The picture above is from that article. Have a read if you are interested in the changing dynamics between startups and MNOs. It’s one of the most interesting areas in development right now.