Mobile virtual network operators (MVNO) could be a key in increasing revenues for telecoms in Africa, says Mats Carrgard who is the chief commercial officer of Virgin Mobile South Africa.

MVNOs are companies that ride on other operator’s networks to expand and provide services. In some instance telecoms give out their networks that are in excess to the virtual operators on a wholesale agreement and then split the revenues.

Virgin Mobile is an example of an MVNO in South Africa. The company is working with Cell C to provide mobile services.

And during a panel presentation during the AfricaCom 2013 opening in Cape Town, South Africa, Carrgad said that Africa has a market made up of young people that offers numerous niche markets.

“There are niche markets like banking and retail which will grow in the future through MVNO,” Mat said.

Apart from South Africa, this model has not been embraced much in sub Saharan Africa.

Telecoms who are seeking to expand their service can partner with these MVNOs and offer market services that they wouldn’t necessarily offer while extending their reach.

Bjorn Flormann, the chief executive for wholesale business in Cell C, said that telecoms need to ask: “What do we need to serve the customer? It is not about the price but it is about what matters to the customer.”

Mat said that North African countries such as Morocco, Tunisia and Egypt could benefit from MVNO service due to their well structured industry.