Mobile virtual network operators fail to shake up the industry

It has been 13 years since the first mobile virtual network operator entered the SA market with much fanfare. More than a decade later the MVNOs, which lease network infrastructure from mobile operators to sell data and voice services, have failed to gain traction and shake up the industry.

MVNOs have been a good segment in their business. Their success has been down to making it simple to run their operations on Cell C’s infrastructure and systemsThe competition authority has ordered mobile network operators to reduce roaming fees, including those of MVNOs. In 2018, Cell C said it made R486m out of a total R7.8bn for the six months to June from its MVNO customers.

Takaendesa said FNB Connect has “arguably been the most promising MVNO given the strong brand behind it and subsidies meant to retain more banking relationships with customers, but that has also failed to cross a million subscribers four years after launching in 2015”.

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