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South African MVNOs to double market share in 2–3 years

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A new report by BMIT offers an optimistic projection for MVNOs in South Africa.

Mobile virtual network operators will double their mobile services market share within the next 2–3 years, with industry participants expecting around 10–12% of mobile subscribers or more.

BMIT said that although MVNOs still represent a relatively thin slice of the market, the entry of large, mass-market players is significant. Johan Nel, primary author of the BMIT MVNO Report, believes that the combination of fundamental shifts happening in the mobile, retail, banking, IT and media sectors, means that the MVNO market is sitting at an inflection point.

Nel said this is due to their respective market sizes and ability to attract a share of customer spending.Although most big-brand MVNOs are currently focused on below-the-line promotion initiatives, Nel regards these early approaches as learning curves that will evolve towards more integrated value propositions.

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