South Africa’s mobile virtual network operator (MVNO) market is set for explosive growth as emerging players in this market move beyond merely competing on price towards using digital-first distribution strategies and personalised customer experiences to stand out in a crowded market. Those with clear, lifestyle-driven value propositions will be the leaders in a fast-changing sector.
That’s the word from Richard Anderson, Chief Operating Officer at C-CONNECT, one of South Africa’s newest MVNO brands. He says that reliable connectivity and competitive pricing is just the start. MVNOs also need to create a compelling value proposition, backed up by personalised service and high-quality support to thrive.
The launch of C-CONNECT comes at a time when the global MVNO market is evolving rapidly. The global MVNO subscriber base has outpaced traditional mobile network operator subscriber growth for the past 10 years, according to Africa Analysis director, Andre Wills. He expects MVNOs in South Africa to enjoy robust growth in the years to come, despite a saturated cellular market.
Africa Analysis forecasts that the South African MVNO subscriber base will increase from 4.3 million in 2023 to 10 million by 2028, reflecting a compound annual growth rate (CAGR) of 18.3%. Wills notes that South African MVNO market has, to date, developed in an environment that has offered little regulatory support to MVNOs.
Despite that reality, 33 MVNOs have launched in South Africa to date and 17 remain operational. A requirement that mobile network operators host at least three MVNOs as part of their spectrum licence conditions will help to spur growth in the market, says Wills. He adds that MVNOs benefit consumers by helping them diversify their customer base, especially in prepaid and lower-cost markets.
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.
Arthur Goldstuck, CEO of World Wide Worx, says there are nearly 118 million mobile connections active in SA, representing 195% penetration of the population. In this competitive environment, building a strong brand is essential for MVNOs. He emphasises the importance of simple, flexible packages and a sense of community in fostering brand loyalty.
He adds that consumers will be drawn to mobile operators that offer instant gratification, seamless roaming, support for a nomadic lifestyle, and easy account management via 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.
Anderson says the South African MVNO market is ripe with opportunity for new brands that can effectively differentiate themselves through innovative offerings and strong customer engagement. As a prepaid, SIM-only brand, C-CONNECT leverages the robust network infrastructure of C-Cell to deliver cost-effective mobile services without compromising quality.
C-CONNECT’s unique proposition is its commitment to rewarding customers for everyday mobile usage. Subscribers earn 10% back in the form of “Cha-Chings,” an in-app currency, whenever they top up their Airtime or Data. These rewards can be redeemed for a wide range of lifestyle products and services, including prepaid electricity, event tickets, and gaming vouchers.
“Our brand is funky and vibrant, designed to connect with customers in meaningful ways,” says Anderson. “By driving digital inclusion and offering an affordable, tailored service, we’re not just offering connectivity; we’re giving our customers the power to see real rewards from their mobile usage. As MVNO adoption grows, we are well-positioned to capture a substantial share of the market.”