Standard Bank has launched a new Mobile Virtual Network Operator (MVNO) service providing voice and data services in South Africa. The MVNO, known as Standard Bank Mobile, will ride on Cell C and MTN’s network. The launch is coming two years after the bank ruled out its entry into the telecoms space.
One wonders what Standard Bank hopes to distinguish itself from other players in the already crowded telecoms space in South Africa. Market penetration is already above 100% dominated by four key players – Vodacom, MTN, Cell-C and Telkom SA.
Well Standard Bank Mobile CEO, Stephen Bailey has this to say about distinguishing itself, “With the MVNO space fiercely competitive in SA at the moment, SB Mobile is offering something totally different: an integrated (rather than a stand-alone) service, which rewards subscription customers with free airtime and data for doing something they do every day – bank.”
The service is only available to Standard Bank customers will be offered for R39 per month and customers would be allowed to convert bank charges into airtime or data.
“Rewards are tiered so that everytime they transact, they get something back. 1MB of data is given back for every R10 spent on all transactional cards, for instance, at a monthly fee of R39. Youth and inclusive banking clients will pay no fee however,” said Bailey.
“We are not launching a new mobile network. We are extending our digital offering to our clients,” says Funeka Montjane, chief executive for Standard Bank personal and business banking South Africa.
“As Standard Bank embarks on an extensive digitisation drive, mobile communication has become a key feature in modern financial services. It’s impossible to separate your phone, from your credit card, insurance or ability to transfer funds across borders. SB Mobile is an extension of our digital offering,” Montjane adds.
“Expiring data bundles are a thing of the past, customers can choose data pricing that is most relevant to them, they can simply add it to their monthly subscription and will then get more rewards the more they transact,” said Montjane.
Standard data and voice rates are detailed below.
- Voice – R1.29 per minute
- Data – R0.49 per MB
- SMS/MMS Local – R0.60
- SMS International – R2.00
- MMS International – R4.50
Standard Bank Mobile will provide a branded SIM card with a new number; however already existing cell numbers can be retained. It will also provide handsets in the first quarter of 2019 and add broadband services like fixed LTE and fibre shortly afterwards
Standard Bank Mobile will benefit from Cell C’s recently concluded roaming agreement with MTN.
FNB was the first bank in South Africa to launch an MVNO with Cell C in 2015 and the MVNO has reached over 600 000 mobile subscribers in the country.
