South Africa’s mobile virtual network operator market growth will continue to outpace that of mobile operators for some time to come.
Vodacom was the third local MVNO to enter SA’s intensely contested MVNO market, after Cell C and MTN launched their enablement platforms in 2006 and 2020, respectively.FNB Connect, Capitec Connect, PnP Mobile, Boxercom, Poket Mobile, Sakeng Mobile, K’nect Mobile, TFG Connect, Capitec Connect, Melon Mobile and Afrihost Mobile are some of the MVNO players in SA.
“This suggests the MVNO business model has been proven and has now started to attract the necessary level of venture capital and institutional investment needed to drive sustainable growth and competition needed for the market to remain healthy.”However, it says the MVNO market is not simply about subscriber numbers, as the value-add of mobile virtual network enablers and MVNOs is significantly more than that.
“These are wholly new market dynamics and it is quite exciting to see this evolving within the market structure. Measuring customer value now goes way beyond merely comparing price per gigabyte. It also has segment-specific context.” It points out the total customer value generated by MVNOs goes beyond mobile ARPU and subscriber numbers, and extends into the enablement of additional value for core business and customers, as well as MVNOs, becoming key drivers for value propositions and attractiveness to customers.
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