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IDC Proffers Solutions to Africa’s Failing MVNO Environment

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Despite the strong growth of mobile virtual network operators (MVNOs) globally, the majority of MVNO efforts in Africa to date have been unsuccessful despite happening in countries offering favourable market conditions and plentiful opportunities.

That’s according to new insights from global IT market intelligence firm International Data Corporation (IDC), whose latest report shows that while the number of MVNOs has increased globally in recent years, the trend remains in its infancy in Africa, with the continent playing host to less than 1% of the world’s 1,000 MVNOs.

“The MVNO situation is different in Africa because of several challenges such as a lack of regulatory support, poor business models and strategies, low ARPUs, market saturation in some countries, fear of competition, and resistance from incumbent mobile telcos,” said Leonard Kore, a research analyst for telecommunications and media at IDC East Africa. “Despite this, opportunities do exist, and a number of MVNOs have been launched on the continent, especially in Kenya and South Africa. Fast-developing telecommunications markets such as South Africa, Kenya, Egypt, Nigeria, and Morocco exhibit high mobile penetration rates and oligopolistic market structures, necessitating the need for MVNOs that focus on niche market segments.”

IDC believes some of the key factors driving the potential for MVNO growth in Africa are the existence of strong local brands, low barriers to entry, decreasing interconnection rates, emerging niche segments and the ability to generate alternative revenue streams for host telcos.

The rise of MVNOs across the continent is likely to bring a number of advantages, including greater competition.

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This will drive improved quality of service (QoS) levels courtesy of increased network infrastructure investments, increased innovation, improved customer experience, and competitive pricing in some markets.

“IDC is seeing a trend where subscribers in some African countries are seeking many value propositions from their operators, including mobile money services, low pricing, extended network coverage, 3G or 4G services, affordable data packages, and unlimited plans, among others,” said Kore. “We are now seeing customers purchasing dual-SIM phones to accommodate more than one operator. A multi-SIM environment lowers the cost of customer acquisition in a market where users rarely change operators; this provides hope for new MVNO entrants that offer the right services. The best example of this is in Kenya where Equitel, a new MVNO, is trying to challenge the status quo by offering thin SIM card technology.”

“The key opportunities for MVNOs looking to operate in Africa include mobile money, discount services, triple-play services, OTT and VAS, roaming solutions, and public WiFi,” continues Kore. “There will also be opportunities in the future for those offering M2M/IoT solutions. For MVNOs to take advantage, they need to leverage partnerships with strong local brands and distribution networks, negotiate the right wholesale agreement, ensure operational excellence and avoid sparking price wars. MVNOs should adapt to local market dynamics and needs, and aim to host and control in-house critical elements (e.g., business intelligence/analytics, customer relationship management, and the billing platform) as this will enable them to access vital customer and market information in a timely fashion. At the same time, regulators are also urged to create a supportive regulatory environment that will help position African countries as possible MVNO destinations.”

IDC’s report ‘The MVNO Opportunity in Africa’ (IDC #CEMA23487) provides an insight into the MVNO landscape in Africa. It assesses the key drivers and inhibitors of MVNO growth, while looking at the key opportunities for MVNOs in the future. The report also provides some key strategic recommendations for current and potential entrants in the MVNO ecosystem.

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For more than 50 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world’s leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

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IDC in the Middle East, Africa, and Turkey
For the Middle East, Africa, and Turkey region, IDC retains a coordinated network of offices in Riyadh, Casablanca, Nairobi, Lagos, Johannesburg, and Istanbul, with a regional centre in Dubai.

 

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E-Business

HURIWA, CLO Protests Bill Asking Social Media Firms’ to Open Shops Nigeria

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Human Rights Writers Association of Nigeria (HURIWA) has opposed a bill seeking to compel major global social media companies to establish physical offices in Nigeria.

HURIWA, CLO Protests Bill Asking Social Media Firms’ to Open Shops Nigeria

The rights advocacy group urged the National Assembly to discard the proposed legislation, warning that it could become a tool for censorship and undermine citizens’ constitutional right to freedom of expression, despite being presented as a measure to strengthen Nigeria’s digital economy and improve corporate accountability.

The position was contained in a presentation submitted yesterday by Emmanuel Onwubiko, national coordinator, HURIWA, to the chairman of the Senate Committee on ICT and Cyber Security.

The bill, sponsored by Senator Ned Munir Nwoko, has already passed second reading in the Senate and is before the committee for further legislative consideration.

HURIWA said it carefully reviewed the proposed legislation and concluded that compelling global technology companies to establish offices in Nigeria was unnecessary and potentially counterproductive.

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The organisation argued that while the firms generate substantial revenue from Nigeria’s vast digital market, they already engage Nigerians through existing structures, including paying eligible content creators, working with local technology professionals and participating in legal proceedings whenever required.

According to the group, appointing local representatives where necessary would adequately address concerns about engagement with regulators and users without forcing the companies to maintain physical offices.

It also dismissed claims that mandatory country offices would significantly improve consumer complaint resolution, technology transfer or employment generation.

HURIWA maintained that the platforms already have effective feedback mechanisms for resolving users’ complaints and routinely appear before Nigerian courts through their representatives whenever litigation arises.

The group, however, said its greatest concern was the potential for the proposed law to be used as an instrument for restricting freedom of expression.

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It argued that establishing local offices could expose global social media companies to pressure from government authorities to remove online content considered critical of those in power.

According to the rights group, the presence of social media companies in Nigeria could become an avenue for authorities to pressure them into abandoning internationally recognised digital rights standards in favour of politically motivated content moderation.

It recalled previous attempts to regulate social media in Nigeria that generated widespread concerns over possible restrictions on free speech, stressing that any legislation affecting the digital space must contain clear safeguards against abuse.

The organisation warned that the proposed law should never become “a backdoor mechanism for government surveillance, arbitrary content removal or political censorship.

 

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Nigeria Leads Africa in Online Gambling Regulation – GCI

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Nigeria has emerged as one of Africa’s most regulated online gambling markets, even as illegal operators continue to dominate the continent, according to a new report by Gaming Compliance International (GCI).

Nigeria Leads Africa in Online Gambling Regulation - GCI

The report, the first comprehensive assessment of online gambling across all 54 African countries, showed that Africa’s online gambling Gross Gaming Revenue (GGR) reached $23 billion in 2025.

However, only $5.2 billion (23 per cent) was generated by licensed operators, while $17.8 billion (77 per cent) remained in the unregulated market.

In West Africa, total online gambling revenue rose to $4.8 billion in 2025 from $4.3 billion in 2024. Of the 2025 figure, regulated operators accounted for $1.5 billion (31 per cent), while $3.3 billion (69 per cent) flowed to unlicensed platforms, highlighting the region’s persistent enforcement challenges.

Nigeria stood out as the region’s strongest performer, recording the lowest unregulated market share at 56 per cent, compared with the West African average of 69 per cent and the African average of 77 per cent.

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The study also found that online gambling participation across Africa increased from 198 million people (13 per cent of the population) in 2024 to 215 million (14 per cent) in 2025.

Despite this growth, GCI estimated that illegal operators deprived African governments of about $3.55 billion in tax revenue in 2025. The number of unlicensed gambling platforms targeting African consumers also rose to 4,129, up from 3,644 in 2024.

Commenting on the findings, Matt Holt, chief executive officer, GCI, said the report provides regulators with the first continent-wide benchmark for strengthening oversight and consumer protection.

Ismail Vali, president, GCI, urged governments to develop competitive and well-regulated markets that encourage consumers to patronise licensed operators, boost public revenue and attract greater investment.

Online gambling in Nigeria is regulated by the Nation Lottery Regulatory Commission.

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Kaspersky Warns Mobile‑data Buyers about Scammers Posing as Telecoms Operators

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At the height of the Northern Hemisphere tourist season, demand for communications and mobile Internet services rises sharply. Kaspersky’s security experts have uncovered scams that target anyone purchasing mobile connections or SIM cards worldwide.

Fraudsters create counterfeit websites that look like the portals of major regional and international telecom providers to trick users into revealing their phone numbers, personal details or banking information.

Kaspersky is sharing several examples of these fake login pages that mimic legitimate telecom operator sites and giving recommendations on how not to be deceived.

In the first case, scammers exploit the brand name of an international telecommunications company operating services in Asia, Africa and Europe. Fake authentication pages encourage users to put in their phone number and credentials.

While the first example shows the different design, the second scam site closely mimics the original log in page, making it hard for users to tell the difference and spot a fake. Entering authentication or payment data on fraudulent web sites may result in money or data loss and become a reason for more frequent spam and fraudulent calls.

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Another example is a scam page which poses as another international communications company, working in North Africa, the Middle East and Southeast Asia. In this scheme scammers encourage users to top up their mobile data/Internet plans by entering their personal information and bank cards details.

Kaspersky experts have also identified a scam when cyber criminals suggest users enter their personal data to check and pay a bill inquiry. Such scam schemes are usually aimed at gaining victims’ personal data for further fraud or account hacking and stealing money.

“Because of the active use of AI, scammers can now create fake pages with ever increasing accuracy and speed, targeting the most popular user interest areas. We constantly see scams revolving around sports events, music concerts, seasonal sales and holidays. Unfortunately, the telecoms industry is no exception.

To keep your data and money safe, be vigilant when purchasing mobile or Internet plans online. Using an eSIM – purchased through an official app – is one way to avoid fake telecom sites, as it eliminates the need to enter personal details on questionable web pages.

If you’re unsure about a site’s legitimacy, search for the brand name directly in a search engine and enable a security solution that blocks phishing links for you,” comments Tatyana Kulikova, cybersecurity expert at Kaspersky.

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