JSE-listed investment firm Huge Group is looking to shake up South Africa’s mobile virtual network operator (MVNO) market with its newly-launched platform – Huge NXTGN (pronounced next-gen).
Huge NXTGN was established following Huge Group’s acquisition of the now defunct Virgin Mobile South Africa, the first MVNO on the African continent, nearly two decades ago.
The company officially launched Huge NXTGN in the final quarter of 2024.
The move comes as the niche MVNO market continues to grow in South Africa. According to a recent report by market analyst firm BMIT, the local MVNO market will continue to outpace that of mobile operators for some time to come.
BMIT expects the market to grow from around 4.8 million active subscribers at the end of this year, to 11 million to 12 million by 2029 − representing a compound annual growth rate of 18%.
FNB Connect, Capitec Connect, PnP Mobile, Boxercom, Poket Mobile, Sakeng Mobile, K’nect Mobile, TFG Connect, Capitec Connect, Melon Mobile and Afrihost Mobile are some of the MVNO players in SA.
Headed by James Herbst, Huge Group is an investment entity listed on the JSE, with 18 companies in its portfolio.
Last year, the company appointed MVNO veteran Jason Harmsen as managing director of Huge NXTGN.
According to the firm, Harmsen has been actively involved in the MVNO sector since its inception in South Africa in 2006 and most recently served as CEO of MVNE Proprietary Limited, an enablement company based in Johannesburg, where he facilitated the launch of MVNOs across various African markets.
Digital expansion
In an interview with ITWeb, Harmsen says Huge NXTGN offers an enablement capability that functions like a toolkit for businesses looking to provide branded connectivity services.
He notes Huge NXTGN is designed for businesses looking to embed virtual digital or connectivity services into their customer proposition.
According to Harmsen, traditionally, the high barriers to entry meant only the largest businesses could consider launching an MVNO.
“Through our platform-as-a-service model, we have transformed what was once a closed ecosystem into an accessible, open environment.
“As a portfolio investment company within Huge Group, Huge NXTGN benefits from access to extensive skills, infrastructure and technology, providing a foundation for innovation.
“This has enabled us to create an ecosystem of digital telecom and technology services, allowing any entity, from small communities and SMMEs, to large corporations, to participate in the digital telecommunications economy without the burden of traditional barriers.
“We provide a turnkey solution, enabling businesses to create a proposition, bill for it, support it, and integrate it with other digital and related products and services.”
Asked if Huge NXTGN has partnerships with mobile network operators, Harmsen says: “In any MVNO initiative, it is important to understand that this is not a traditional client-supplier relationship. Rather, it is a tripartite partnership involving the consumer brand, Huge NXTGN as the enablement partner, and the mobile network operator acting as the host network.
“Huge NXTGN operates on a collaborative partnership model, ensuring transparency and aligned interests between our clients and their host networks − an approach we believe is key to mutual success.”
Mobile moves
He points out that Huge NXTGN is already integrated with the MTN network, and is in discussions with other South African mobile network operators to ensure clients can access services from their preferred host network.
“This provides businesses with greater flexibility, better coverage and competitive pricing, making it easier to enter or expand within the mobile market,” he says.
According to Harmsen, in Q4 last year, Huge NXTGN migrated two major South African retail clients onto the platform, with above-the-line market launches scheduled for Q1 this year.
Additional clients, including companies within Huge Group’s investment portfolio, will go live throughout 2025, he notes.
“South Africa has witnessed a sharp increase in demand for MVNO services, with the sector nearly doubling in size over the past year. Despite the challenges businesses face in becoming MVNOs, our unique model has already attracted significant interest, and our pipeline of client engagements is extensive. We have ambitious plans for 2025.”
Share