South African MVNOs are shaking up the mobile market by shifting their focus from price wars to lifestyle-driven value propositions and personalised services. This strategic pivot is set to catalyse explosive growth in the sector, according to industry experts.
Richard Anderson, Chief Operating Officer at C-CONNECT, one of South Africa’s newest MVNO brands, emphasises that while competitive pricing and reliable connectivity remain crucial, they are merely the starting point. “MVNOs need to create a compelling value proposition, backed up by personalised service and high-quality support to thrive,” Anderson states.
The global MVNO market has been evolving rapidly, with subscriber growth outpacing traditional mobile network operators for the past decade. Andre Wills, director at Africa Analysis, projects robust growth for South African MVNOs despite a saturated cellular market. The firm forecasts an increase in the South African MVNO subscriber base from 4.3 million in 2023 to 10 million by 2028, reflecting a compound annual growth rate (CAGR) of 18.3%.
This growth comes despite historically limited regulatory support for MVNOs in South Africa. However, recent spectrum licence conditions requiring mobile network operators to host at least three MVNOs are expected to stimulate further market expansion.
Arthur Goldstuck, CEO of World Wide Worx, highlights the importance of brand-building in this competitive landscape. “Simple, flexible packages and a sense of community are essential in fostering brand loyalty,” Goldstuck notes. He adds that consumers are drawn to operators offering instant gratification, seamless roaming, support for nomadic lifestyles, and easy account management via self-service.
C-CONNECT exemplifies the new wave of MVNOs capitalising on these trends. As a prepaid, SIM-only brand, it leverages C-Cell’s network infrastructure to deliver cost-effective mobile services without compromising quality. The company’s unique selling point is its reward system, where subscribers earn 10% back in “Cha-Chings,” an in-app currency, for topping up Airtime or Data. These rewards can be redeemed for various lifestyle products and services.
“Our brand is funky and vibrant, designed to connect with customers in meaningful ways,” Anderson explains. “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 the MVNO market in South Africa continues to evolve, those operators that can effectively differentiate themselves through innovative offerings and strong customer engagement are poised to capture a substantial market share. The focus on digital-first strategies, personalisation, and lifestyle-oriented services is likely to shape the future of mobile connectivity in the country.
