Mobile telecoms operators in Africa have unique business models that could be beneficial for first world mobile businesses, says Professor Leonard Waverman, economist and chair at the London School of Business.
Waverman was speaking at a London conference organised by the Commonwealth Telecommunications Organisation earlier this month, aimed at harnessing the potential of mobile communications.
"Mobile communication business models are highly evolved in Africa and other developing nations because of their unique environments," says Waverman.
He cites the example of how African mobile operators have devised the mobile credit "top-up" system for people living in rural areas, whereby individuals use a toll-free number to buy airtime instead of travelling long distances to buy scratch cards.
He says in a case like this, operators in developing regions have had to adapt to extreme situations making them a powerful example to more developed economies.
Innovative solution
Waverman says the two-way revenue business model devised by Vodacom`s mobile phone shops is an example of an innovative solution, which creates profits for the individual and the operator.
Strategic business models have created positive economic growth in the African market, he notes.
He adds mobile operators in the region have become adaptable in building business models appropriate to the diverse markets within the entire African market.
The mobile uptake in Africa is the fastest growing market, with about 66 million mobile users predicted by the end of 2006, says Waverman. He attributes this growth to clever business tactics by the mobile operators. "Mobile operators are filling a gap within the market which is creating strong economic benefits for people."
He says Western mobile operators are becoming more interested in "setting up shop" in Africa after watching big operators like Celtel, Orascom Telecom, MTC, MTN, and Vodacom bring in substantial yearly revenues across the continent, despite issues of poverty among the majority.
Share