WOLMARANSSTAD - Several banks have launched mobile virtual network operators (MVNOs) with attractive data prices and value-added features that benefit their customers
Unlike fully-fledged mobile network operators, MVNOs don’t operate their own mobile network infrastructure.
They can run with much smaller teams and deliver new features and changes faster than larger operators.
In addition, depending on the wholesale deals they have with their upstream mobile operator, they may be able to experiment more with package structuring and pricing than the traditional players.
The oldest bank-run MVNO in South Africa is FNB Connect.
Launched in 2015, FNB Connect initially roamed on Cell C’s network but added MTN as a roaming partner in June 2023.
FNB Connect had 958,000 subscribers by June 2024 and generated R18.6 billion in revenue in the bank’s 2024 financial year.
However, it lost its title as the country’s biggest MVNO to the two-year-old Capitec Connect sometime in the past year.
As of August 2024, Capitec Connect had 1.2 million active subscribers, up from 900,000 a year earlier. Less than three months later, that number had grown to 1.4 million.
User activity on Capitec Connect’s network has also been impressive, with 29.7 million voice minutes used in 2023, more than tripling to 95.1 million minutes in 2024.
Total mobile data consumption across the network also surged 264% from 1.4 petabytes to 5.1 petabytes.
Combined with Capitec’s other value-added services, the MVNO contributed about R1.5 billion to the bank’s headline earnings in its 2024 financial year.
Capitec Connect runs on Cell C’s network, which is maintained by MTN.
The third biggest bank-run MVNO is Standard Bank Connect, which has amassed over 300,000 customers since launching in 2018.
The MVNO was initially called Standard Bank Mobile but was rebranded in June 2024 as part of the bank’s strategic telecommunications direction.
In addition to introducing new data and voice packages, Standard Bank ditched Cell C and moved over to MTN.
Standard Bank Connect head Kartik Mistry said the transition would be gradual, with customers getting invited to join its pilot programme over time.
The most recently launched bank-run MVNO is Spot Mobile, operated by Bidvest-backed Spot Money.
Rolling out in January 2024, Spot Mobile offers a free prepaid physical SIM or eSIM and several month-to-month packages with monthly mobile data.
As part of its launch deals, it gives prepaid customers R50 in free airtime every month and 1GB of mobile data for the first month.
The most affordable month-to-month offering from Spot Mobile is a 5GB data-only plan priced at R159 per month.
For just R30 more, customers can get the same data with 2,000 voice minutes.
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Updated: 31 January 2025 Friday
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