|There are a growing number of parties interested in connecting the unconnected in Africa using Wi-Fi and unlicensed bands.|
Facebook Microsoft and Google all active in one or another manner. All trying to build a network and recover the costs in monthly payments.
Almost all call it a quasi-social service. Raise capital from quasi-state banks from Europe and US. A lot are Corporate Social Responsibility (CSR)
The unconnected are the lower part of the pyramid and do not have regular income. Mobile operators serve them wirelessly -3G and 4G) but it is too expensive.
They prefer a dedicated connection. You build. They buy. As soon as they lose income they go delinquent.
If you deliver services via unlicensed bands to deliver infrastructure into their homes, as they do not have regular income, most a hustlers, they go delinquent, you waste the investment you made to connect them.
As the operator do not have widespread coverage, if they move out of coverage you waste your investment too.
My idea is to create a for profit business. I would raise capital and build a virtual operator. I build, own and operate the Hotspots' facilities. I then lease it back to a company which brands it and perform location based advertisement.
Here in Kenya, a mobile device Smartphone Tier 2 producer wants to establish hotspots in the universities .
Aims to get the customer younger into their brand.
The technical part a Wi-Fi network operator, Elmat) will deploy the Hotspot.
The Smartphone Tier 2 producer will brand the Hotspot as their network and exploit the marketing opportunity.
Look you guys are American and you know business much more than I do. I would like to have your thoughts on a plan like this.
Thanks in Advance.