Telkom is making a significant move into the Mobile Virtual Network Operator (MVNO) sector by partnering with a leading Mobile Virtual Network Enabler (MVNE) platform provider. This collaboration goes beyond mere business interests; it also aligns with South Africa’s telecommunications regulations and paves the way for the emergence of more MVNOs, particularly those owned by black entrepreneurs.
The MVNO market in South Africa is rapidly expanding, attracting interest from banks, insurance companies, and major retail brands eager to capitalize on the lucrative telecommunications sector. The market is thriving, and a report from Africa Analysis in February 2024 forecasts that MVNO revenue will soar to an impressive R83.6 billion, indicating substantial growth potential in this arena.
Since the inception of MVNOs in 2006, the subscriber base has experienced remarkable growth, with a year-on-year increase of 51% by the end of 2023, totaling over 4.3 million users. This surge reflects a growing consumer preference for mobile services offered by financial institutions, retailers, and niche brands, highlighting the demand for tailored mobile solutions that cater to individual needs.
Telkom’s CEO, Lunga Siyo, expressed enthusiasm about this new venture, stating, “The MVNO market is an exciting space, and we’re ready to support new players with our network and infrastructure.” To facilitate the entry of new MVNOs, Telkom is implementing a streamlined and scalable platform designed to simplify integration, operation, and ensure seamless network access.
By collaborating with experienced MVNE providers, Telkom is not only granting network access but also assisting businesses in developing sustainable models that encompass end-to-end customer engagement, intelligent product design, and seamless technological integration. Their objective is to empower brands across various industries to connect with customers in meaningful ways that deliver real value.
This strategic initiative is not merely a short-term endeavor for Telkom; the company is committed to establishing itself as a key player in the MVNO landscape for the long term.
