Business

MTN unlocks mobile virtual network operator potential in SA

Mobile operator, MTN, has enriched the South African mobile virtual network operator market.

So say analysts, after retailer Pick n Pay this week became the latest company to introduce an MVNO product – PnP Mobile – the first to launch on the MTN network, ITWeb reported.

The MVNO market in SA had over the years been dominated by Cell C, with MVNOs such as FNB Connect, me & you and Mr P Mobile, among others, piggy-backing on the telco’s network.

However, Cell C is facing deep financial problems, with FNB CEO, Jacques Celliers. recently telling ITWeb that FNB Connect is waiting for stability at Cell C in order to scale.

In its latest results, the financially-distressed Cell C posted a net loss of R7.5bn, although it says it remains optimistic and is forging ahead with its restructuring strategy to optimise operations.

When launching its MVNO platform last month, MTN said with its extensive national network that covers rural areas, MTN offers MVNO partners “a high-quality network experience and opportunity to deliver innovative solutions that reach even more South Africans”.

According to MTN, the new service also opens an opportunity for the company to explore specific bespoke projects through strategic approved MVNO partnerships.

Vodacom is also reportedly planning to launch its own MVNO platform.

Commenting on SA’s MVNO market, Christopher Geerdts, director at BMIT, says the launch of PnP Mobile demonstrates the MVNO market has been enriched by the entry of MTN as a wholesale provider.

Source: punchng.com