South Africa’s mobile virtual network operator (MVNO) market has experienced remarkable growth in recent years, fueled by the entry of new players and strategic offerings from established brands seeking to tap into digital spend. This reveals Africa Analysis’s 2023 SA MVNO report.
South Africa’s MVNO Market Surges as Branded Offerings Drive Growth
Andre Wills, MD at Africa Analysis, highlights the evolving landscape of the MVNO market, emphasizing how brands outside the telecom sector leverage MVNO offerings to access untapped segments of their customer base’s digital spending.
He notes that brands like Capitec Bank and Standard Bank have successfully utilized their trusted brand reputation to attract over a million registered Sims on their platforms.
However, Wills underscores that MVNO’s success hinges not only on brand strength and an existing customer base but also on robust distribution channels and comprehensive customer support ecosystems. Overlooking these factors can hinder MVNO growth and market traction.
Moreover, branded MVNOs are reaping additional benefits beyond revenue generation, as they enhance customer loyalty and differentiate themselves from competitors, thereby strengthening their brand profiles.
Growth Trajectory of South Africa’s MVNO Market
The Africa Analysis report reveals significant market growth, with MVNO Sims in use surging to 4.3 million in 2023, representing a remarkable 51% growth rate over the previous year.
The market is valued at R4.3 billion, and projections suggest that it will reach 10 million Sims by 2028, potentially propelled by the entry of more retail brands into the market.
Currently, Cell C hosts 95% of all MVNO Sims in South Africa, with the remainder on MTN’s network. However, Wills anticipates that Vodacom and Telkom will begin hosting MVNOs within the next 18 months, diversifying the market further.
The report underscores the dynamic growth trajectory of South Africa’s MVNO market, driven by a combination of strategic partnerships, evolving consumer preferences, and the expanding digital ecosystem.
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