Four growth challenges for emerging African telcos

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Four growth challenges for emerging African telcos
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by Robert van Breukelen, COO at Itemate Solutions DODOMA, Tanzania, 25 September 2023 -/African Media Agency (AMA)/- Africa is home to a thriving telecoms industry typified by a small group of very large, dominant telcos – such as MTN and Safaricom – and a highly competitive group of emerging telcos. These telcos play a vital role […]

DODOMA, Tanzania, 25 September 2023 -/African Media Agency /-

In many consumer markets, telco customers also prefer physical over digital services. For example, purchasing scratch cards in the physical form despite the convenience of digital airtime vouchers. Critically, this type of stock loss can also affect the customer experience. If a box of scratch cards are lost before they could be activated, a customer may inadvertently purchase a scratch card that doesn’t work. And when they contact a service centre for support, the telco has to choose between disappointing the customer or taking a revenue hit by providing the airtime at a loss.

SIM recycling happens when a telco detects a specific mobile number is dormant, and reuse that number for new subscribers. However, the nature of mobile connectivity in Africa is that customers often have multiple SIMs they use for different purposes, like phone calls and mobile money transfers for example. When a telco then recycles that number, the customer suffers not only inconvenience, but sometimes monetary losses as a number linked to their mobile money store of value is recycled.

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