The Adoption of Mobile Virtual Network Operators by Equity Bank in Kenya

Abstract

The adoption of Equitel MVNO met challenges since the award of license to three MVNOs by Communications Authority of Kenya. One of the Mobile Network Operators, Orange Kenya wrote to CAK complaining about an oversight on rules of engagement and parameters on how mobile operators should do business with MVNOs. The High Court of Kenya stopped the launch of Equitel thin SIM card following a case presented by Legal Advice Centre which claiming that the Communications Authority of Kenya gave the go ahead for the launch of the technology before a comprehensive assessment was done on its security risks. However, Communications Authority of Kenya and Central Bank of Kenya then went ahead and gave Equity the go ahead to roll out the thin SIM card technology saying that no major security complaints had been reported. The data required was collected from primary sources or from secondary sources Equity Bank (Kenya) Ltd. The researcher used questionnaire to collect data from respondents. The questionnaire had different questions majorly covering the factors that have enhanced and inhibited mobile banking services and challenges encountered for adoption of MVNO. The study observes that adoption of MVNO offers a lucrative opportunity for financial institutions and its potential is yet to be fully exploited. There are a number of factors that that either hinder or propel adoption of MVNO, bearing in mind that the operating environment is also not static but evolving. The study therefore concludes that financial institutions should therefore come up with mobile banking strategies, products and solutions. Such strategies will offer competitive edge to banks in an industry dominated by MVNO. This study is geared towards Equity bank customers who are currently using MVNO whose needs are seen to vary from other customer segments.