- Operator understood to be in talks with host of companies over establishment of MVNOs.
- Move will see Vodacom follow in footsteps of competitors Cell C and MTN as it seeks to unlock new revenue stream and comply with licence obligations.
Vodacom looks to be progressing its plan to establish a mobile virtual network enabler (MVNE) platform. The Sunday Times of South Africa reported that the operator has opened talks with a host of companies looking to utilise its network for the provision of mobile and voice services.
The country’s 4G and 5G spectrum auction in March 2022 saw the Independent Communications Authority of South Africa declare that mobile network operators must be open to at least three MVNOs to obtain new licences (Vodafonewatch, #205). As a result, Vodacom is planning to launch an MVNE platform in 2023 — a move that will see the operator follow in the footsteps of competitors Cell C and MTN.
According to the Sunday Times, Vodacom Managing Director Sitho Mdlalose said the operator is “open for business” to take on new MVNOs, and “in discussions with a number of interested parties across a range of industries”, with an update expected “in due course”.
One industry that has demonstrated a particular interest in MVNOs is the banking sector, which is looking to complement financial services with a range of mobile services. Examples include Capitec, which launched Capitec Connect on Cell C’s network, and Afrihost and Standard Bank, which are piggybacking on MTN’s network.
MVNOs could stimulate revenue increases for Vodacom during a tough period. In its most recent set of annual results, Vodacom cited a collection of external economic pressures such as the Ukraine–Russian war as having “impacted commodity prices and heightening inflation risk”.
MTN saw its wholesale revenue increase by 21.7% in the third quarter to 30 September 2022 (Q3 FY22) , attributing much of the growth to “solid growth in the MVNO portfolio”. It also stated that, at the end of 2021, there were “over 550k active customers from MVNO partners connected to the MTN network”. With a customer base of more than 40 million, Vodacom will look to oversee similar success in South Africa.
Reports that Vodacom was looking to build a platform to support MVNOs began in 2020, although the process has been relatively slow moving. Initially, Shameel Joosub, Chief Executive of Vodacom, told TechCentral that its MVNE platform was expected to launch once the country’s 4G and 5G spectrum auction had been completed. However, the delay in the release of new frequencies is believed to have pushed back the establishment of the platform.
