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Africa|Building|Environment|Infrastructure|Service|Services|Products|Infrastructure|Operations
Africa|Building|Environment|Infrastructure|Service|Services|Products|Infrastructure|Operations
africa|building|environment|infrastructure|service|services|products|infrastructure|operations

South African MVNOs focus on lifestyle value and personalisation

27th September 2024

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

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As South Africa’s mobile virtual network operator (MVNO) market braces for explosive growth, emerging players are moving beyond competing on price towards delivering clear, lifestyle-driven value propositions.

This shift comes as the global MVNO subscriber base outpaced traditional mobile network operator subscriber growth over the past ten years.

According to Africa Analysis director Andre Wills, despite a saturated cellular market, the South African MVNO market is expected to grow rapidly, boosted further by the requirement that mobile network operators host at least three MVNOs as part of their spectrum licence conditions.

To date, 33 MVNOs have launched in South Africa and 17 remain operational.

Africa Analysis forecasts that the South African MVNO subscriber base will increase at a compound yearly growth rate of 18.3%, from 4.3-million in 2023 to 10-million by 2028.

While MVNOs benefit consumers by helping them diversify their customer base, especially in prepaid and lower-cost markets, leveraging digital-first distribution strategies and personalised customer experiences will help these MVNOs “stand out in a crowded market”.

“There are nearly 118-million mobile connections active in South Africa, representing 195% penetration of the population. In this competitive environment, building a strong brand is essential for MVNOs,” says World Wide Worx CEO Arthur Goldstuck, emphasising the importance of simple, flexible packages and a sense of community in fostering brand loyalty.

“Consumers will be drawn to mobile operators that offer instant gratification, seamless roaming, support for a nomadic lifestyle and easy account management through self-service. But they will reject the offer of artificial intelligence-fuelled services with no human touch or personalisation, packages with unexpected charges and hidden terms and slow or unresponsive support,” he continues.

C-Connect chief operating officer Richard Anderson says that the South African MVNO market is ripe with opportunity for new brands that can effectively differentiate themselves through innovative offerings and strong customer engagement.

“Reliable connectivity and competitive pricing [are] just the start. MVNOs also need to create a compelling value proposition, backed up by personalised service and high-quality support to thrive,” he explains.

As a prepaid, SIM-only brand, C-Connect, South Africa’s newest MVNO leverages Cell C’s network infrastructure to deliver cost- effective mobile services without compromising quality. The MVNO offers rewards that can be redeemed for a range of lifestyle products and services, including prepaid electricity, event tickets and gaming vouchers.

MVNOs like C-Connect are capitalising on emerging trends by prioritising digital channels for their entire service offering, from customer acquisition to support, he adds.

“This digital-first approach not only streamlines operations but also enhances customer experience by providing personalised, user-friendly interfaces.”

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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