South African operator Telkom has entered the mobile virtual network operator (MVNO) market through a strategic partnership with a mobile virtual network enabler (MVNE) platform provider. The agreement will help Telkom meet regulatory requirements set by ICASA, which mandates that mobile network operators must support at least three Black-owned MVNOs as part of their spectrum licence conditions.
South Africa’s MVNO market is growing rapidly, fueled by banks, insurance firms, and major retailers driving competition, capitalizing on consumer loyalty to these brands. These businesses aim to create unique branded mobile products and services, build new value propositions, and offer value-added services to enhance customer engagement.
The Africa Analysis MVNO Report (February 2024) estimates the sector's potential revenue at ZAR83.6 million (US$4.6 million). Bizcommunity reports that since the sector’s inception in 2006, subscriber numbers have risen by 51% year-on-year, reaching 4.3 million users by the end of 2023.
Telkom is actively inviting brands to explore partnership opportunities for launching MVNOs. Partners will have access to a platform that supports end-to-end customer engagement, product design and development, and network integration. The company also offers flexible onboarding, tailored support based on technology integration preferences, product development needs, and enhanced customer experience. Partners can also benefit from Telkom’s reliable network and roaming capabilities.
