Newly launched MVNO C-Connect looks to secure early traction in South Africa having established infrastructure partnership with Cell C and developed an in-app rewards offer.
Unveiled at a recent launch event in Johannesburg, C-Connect is a SIM-only brand that offers subscribers the chance to earn in-app currency called Cha-Chings.
Richard Anderson, COO at C-Connect, says subscribers get 10% back in Cha-Chings when they top up their prepaid airtime or data, and can use it to pay for electricity, water, data, event tickets, and gaming vouchers.
One of the key drivers of SA’s MVNO (mobile virtual network operator) market is the spectrum licence requirement that mobile network operators (MNOs), including MTN, Liquid Telecom, Rain, Telkom, Cell C and Vodacom, must host at least three MVNOs. However, Vodacom, Telkom, Liquid and Rain are yet to host any MVNOs.
South Africa’s MVNO market has developed despite a regulatory environment that has offered little support to MVNOs, according to industry analysts.
At C-Connect's launch, Andre Wills, MD of Africa Analysis, explained that the regulatory regime greatly affects the MVNO market. There are different types of regimes: market-driven, managed MVNO, and pro-MVNO, each with varying rules, network access, and support for competition. There are also hybrid regimes that don't fit neatly into these categories.
C-Connect’s partnership with Cell C, which is undergoing transformation and rebranding, could help it secure its footing. Last week Cell C unveiled a new brand identity, which is part of a broader strategy to establish deeper connections with customers, and offer disruptive products and services.
MTN has also made strong inroads into the MVNO partnership space.
As of April 2023, MTN had in excess of 30 partners. As of June 2024, MVNO partner platforms included Standard Bank Connect, PnP Mobile and Afrihost’s AirMobile.
High-growth market
South Africa’s MVNO market is considered a high-growth market. Being digital-first – using apps, online portals, and eSIM technology – MVNOs are able to focus on customer experience to offer personalisation and user-friendly interfaces to attract and keep customers.
Wills said by 2028, the South African MVNO base is forecast to increase from 4.3 million mobile subscribers in December 2023 to 10.1 million in 2028, at a CAGR of 18.3%.
More competition, he added, results in lower prices, greater innovation, more consumer choice, and improved service quality.
According to the research firm’s 2023 SA MVNO Outlook Report, as of December 2023, 2200 MVNOs were launched globally, and just under 1600 remain.
By comparison, in South Africa, 33 MVNOs were launched, with just 17 operational.
Also present at the launch, CEO of World Wide Worx, Arthur Goldstuck, said according to GSMA statistics, in Sub-Saharan Africa, the number of unique mobile subscribers is forecast to grow from 489 million in 2022 to 692 million by 2030.
Moreover, the number of SIM connections (excluding licensed cellular IOT) is predicted to spike from 980 million in 2022 to 1.36 billion.
Goldstuck noted that Africa is currently dominated by 4G technology, but 5G is steadily growing, with 4G expected to decline by the end of the decade.
He said consumers are drawn to mobile operators that offer quick access, seamless roaming, support for a nomadic lifestyle, and easy account management. Simple, clear contracts are also important, while hidden costs, lack of flexibility, and poor support negatively affect customer experience.
Share