Capitec has become the latest bank to introduce a mobile virtual network operator (MVNO) service, promising data and airtime at discounted rates.
The bank will now compete with Standard Bank and First National Bank, which introduced similar services locally several years ago.
Other local MVNO brands include Shoprite Group, Sakeng Mobile, Mr P Mobile and PnP Mobile − Pick n Pay's MVNO.
According to a statement, Capitec Connect is a simplified prepaid solution for voice, data and SMS, offered through a partnership with Cell C.
Available at R4.50 per 100 megabytes or R45 per gigabyte, Capitec Connect data is touted by the bank to be on average 50% below the normal market price.
According to the bank, the data also never expires, provided the SIM card is used at least once in six months.
Gerrie Fourie, CEO of Capitec, says: “South Africans have been complaining about the cost of data. It’s expensive and complicated.
“Bundle pricing, off-peak and peak rates, and the fact that your data expires are all things that make no sense. We’re changing this by giving our clients access to a mobile solution that is simpler to understand, much more affordable and can be recharged easily on our digital channels.”
An MVNO provides cellular services to its clients without owning the network infrastructure. SA’s MVNO market is expected to register a compound annual growth rate of about 7.8% from 2021 to 2026, according to research firm Mordor Intelligence.
The growth of the local MVNO market will be as a result of the entry of new players and the rollout of new value-added services, as more brands explore new verticals, it says.
Capitec Connect SIM cards are available to clients at all Capitec branches and clients can get up to five SIM cards linked to their profile.
Once the SIM is activated, data, minutes, SMSes and airtime can be topped up on the Capitec banking app, using *120*3279# or internet banking. Calls are charged at a flat rate of 90c per minute, while SMSes cost 25c.
According to Capitec, the prepaid solution seeks to bring digital inclusivity to all levels of society by creating an opportunity for everyone to access affordable connectivity anywhere, anytime.
Cell C CEO Douglas Craigie Stevenson adds: “It is through partnerships such as the one between Capitec and Cell C that we can make a major difference in bridging the digital divide that still exists in our country.
“We’re very pleased to be part of the solution that enables South Africans to access a digital lifestyle that can truly change their world.”
Despite local mobile operators making efforts to reduce data prices, South Africa’s mobile data prices are still expensive in comparison with other African countries.
A report by Cable.co.uk ranks South Africa at number 135 out of 233 countries, with 1GB of mobile data in the country costing an average of R37.
Two of SA’s popular hashtags #DataMustFall and #DataAsseblief, have long been in the spotlight, demonstrating the nation’s cry for the lowering of exorbitant data costs.