Telkom South Africa has Begun Operating as a Mobile Virtual Network Operator (MVNO)

Telkom South Africa today announced it has officially entered the Mobile Virtual Network Operator (MVNO) space. The move in part was driven by Telkom’s pursuit to achieve greater competitiveness and compliance with the regulatory requirements imposed on Telkom by South Africa’s communications authority (Icasa) and as part of its process, Telkom has entered into a partnership with a leading Mobile Virtual Network Enabler (MVNE) platform provider with a track record of successful licensing activities in the local market.

Telkom South Africa is now a publicly traded organization (MVNO), like Telkom in some other major telecom operators in this fast growing market. Mobile Virtual Network Operator (MVNO) will allow businesses to offer mobile services without having physical access to the mobile network. The business leases access from existing operators like Telkom. This model is in high demand by banks, insurance companies and retailers looking to offer mobile services designed for specific customers.

MVNOs have seen explosive growth in South Africa since they were first launched in 2006. By the end of 2023, MVNO subscriber numbers had grown by 51% compared to the same time last year, averaging over 4. 3 million customers. Consumers increasingly favour customized mobile solutions that cater to their financial and retail needs, as well as particular types of brands. A new report by Africa Analysis predicted MVNO revenue is set to reach R83. 6 billion in 2024, which confirms the potential for further growth.

Telkom is entering the MVNO market not for the sake of business. But also in line with the spectrum license conditions set out by Icasa – which require Telkom to promote the presence of at least three black owned MVNOs – and is a step to diversification within the telecom sector in South Africa. This could lead to many smaller operators accessing the market and contributing to South Africa’s digital economy.

“Telkom is “excited” about the new venture in Zimbabwe,” said Lunga Siyo, CEO for Consumer and Small Business at Telkom. “Telkom as a company sees new MVNOs as new opportunities for us to simplify the process for our partners. “The single-platform model simplifies integration processes, improves operational efficiency and supports partner network access to ensure that they can thrive,” he said. Telekom will continue to offer end-to-end customer engagement solutions, innovative product design and seamless technology integration to partner networks.

In operating as an MVNO, Telkom South Africa is taking the initiative to be perceived as a key enabler for brands in various types of industries as it will be harnessing its vast network infrastructure coupled with its association with established MVNE providers to ensure value-added services are delivered to customers. We also expect this to benefit both consumers and businesses alike.

The move also highlights Telkom’s long-term vision for the MVNO market. The company aims to establish itself as a major player in this space while supporting new entrants and fostering innovation. With competition heating up among telecom operators like Cell C, MTN, and Vodacom, Telkom’s entry adds another layer of dynamism to the industry.

Telkom South Africa now operates as an MVNO at a time when the sector is booming. As is being clear through its efforts to decouple its operations for potential partners, and to embrace local black-owned businesses, Telkom’s attempt to drive growth and inclusivity in South Africa’s telecommunications industry is clear, especially in light of a growing consumer demand for more inclusive mobile services.

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