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Home Business Editors Pick

Kenyan Equitel launches 5G network, first in Africa

Modupeoluwa Olalere by Modupeoluwa Olalere
March 5, 2024
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Kenyan Equitel launches 5G network, first in Africa
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Airtel and Equitel, the mobile virtual network operator of Finserve, a fully-owned subsidiary of Kenya’s largest retail bank, Equity Group Holdings (previously Equity Bank Group), inaugurated their fifth-generation connectivity service.

It is the first 5G  Mobile virtual network operator (MNVO) in the country and Africa. Nairobi, Mombasa, Kakamega, Siaya, Eldoret, Nakuru, and Bungoma are among the 370 East African cities where the service is available.

It’s Kenya’s third 5G network rollout, following Safaricom in 2021 and Airtel Kenya in 2023. The Communications Authority reported 509,737 5G customers in September 2023, up 13.3% or 59,943.

The network will deliver quicker and more dependable internet connectivity for enterprises, highly populated localities, and internet-hungry individuals, letting them participate in the digital economy, according to Equitel.

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Read also: Airtel Kenya Announces New Managing Director

Predictions have long claimed that 5G will boost dedicated MVNOs. Enterprises and consumers have development potential. Since the MVNOs World Congress 2020 confirmed this tendency, use case specialisation has increased.

Recently, carriers have focused on tactical in-house innovation to win more users worldwide, as MVNOs have become one of the primary choices for users seeking constant connection, diversified internet bundles, and unique products.

These 5G use cases rely less on enhanced mobile broadband (eMBB) and more on ultra-reliable, low latency communications (URLLC) and machine-learning type communication (MTC).

Equitel Kenya

Equitel has become a household mobile banking brand in Kenya by enabling convenient, inexpensive, and accessible financial transactions across many channels. Safaricom’s M-PESA dominates the mobile money sector, where the service competes.

Innovation is vital to the success of African MVNOs, according to Salman Tariq, VP for Europe, Middle East, and Africa at Optivia, a cloud telecoms provider with over a decade of experience in the region.

MVNOs are well-positioned to promote connectivity and personalised digital services because they focus on particular markets. Their agility and concentration on specific consumer groups allow them to develop and provide services that larger MNOs may not be able to afford, Tariq said in his 2024 outlook.

Airtel 5G to be available across Kenya by December, 2023

With 7 million MVNO subscriptions, Africa holds 5.4% of the worldwide market. Compared to the world, the continent has 12% of mobile subscriptions. In the Middle East, 1.4% of subs are MVNOs, but in Western Europe, 8% are.

In 2022, MVNO subscribers climbed by 4%, lower than the worldwide average of 7%, but as banks, merchants, and data-driven telecoms acquire licensing, the market is predicted to develop faster from 2023.

Kenya, which has a more robust MVNO regulatory structure, led Africa with 3 active players in 2016. Equitel remains the only network after two shutdowns. With almost a dozen operators, South Africa tops Africa.

Tags: 5G5G Network
Modupeoluwa Olalere

Modupeoluwa Olalere

Modupe is a tech content writer with 3+ years of experience turning complex ideas into clear, engaging stories. She covers innovation, digital trends, and emerging technologies. When she’s not writing, she’s exploring new tools or tracking trends shaping Africa’s tech ecosystem.

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