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Shoprite launches k’nect mobile MVNO

Sibahle Malinga
By Sibahle Malinga, ITWeb senior news journalist.
Johannesburg, 23 Mar 2021
SA’s newest MVNO will go live next month.
SA’s newest MVNO will go live next month.

The Shoprite Group has introduced its own mobile virtual network operator (MVNO) called k’nect mobile, which it says offers consumers more competitive rates than what is currently available in the local market.

The retail giant has partnered with digital enabler FREI One Digital, and piggybacks off the mobile network infrastructure of Cell C.

The launch of SA’s newest MVNO comes as industry researchers, such as Prescient & Strategic Intelligence, say the global MVNO market is expected to reach $98 billion by 2023 due to the rapid growth of the triple play services in emerging economies, segment-targeted pricing strategies and innovative distribution.

K’nect, which competes with Pick n Pay’s PnP Mobile, is premised on key differentiators, according to the retailer, including simplicity, with flat call and data rates, and no complicated tiers, in a world where data access is a necessity.

The MVNO, which will go live next month, forms part of the retail giant’s financial services offering, which enables customers to conveniently pay bills, buy cellphones, make money transfers, buy airtime and electricity, and obtain funeral insurance in partnership with OUTsurance, says the retailer.

“K'nect mobile is part of our ever-growing suite of fintech products designed to better serve our customers,” says Jean Olivier, GM of financial services at Shoprite Group.

“We’ve spent a lot of time understanding how a mobile network can add value to our customers’ lives, and our solution is an easy to understand network that offers straightforward call and data rates as well as tangible rewards.”

Last year, SA’s second-largest retailer Pick n Pay introduced its MVNO, PnP Mobile, which runs on MTN’s mobile network infrastructure to offer customers prepaid, SIM-based access to services, including airtime, data and SMS, joining a list of other MNVOs on the market, such as FNB Connect, Mr Price and Virgin Mobile, which have been piggybacking on Cell C’s network over the years.

Shoprite Group says users of products in its ecosystem, such as Xtra Savings and the money market account, stand to benefit by signing up for its MVNO.

K’nect mobile customers can, for example, expect free airtime, data or streaming content when swiping their XtraSavings cards at checkout.

Airtime, data bundles and rewards only expire after 60 days, rather than the more common 30-day expiry.

Customers using a k'nect mobile SIM card will also benefit from zero-rated data on selected Shoprite and Checkers Web sites and apps, including the Money Market account, Computicket Web site and the group’s jobs portal, without incurring any data charges.

Call and data rates:

  • 50c per minute all day k’nect to k’nect calls.
  • 99c per minute all day calls to other networks.
  • 15c per megabyte for any size data bundle, up to 1GB.

K’nect mobile also offers the following Xtra rewards:

  • 10% free on recharge.
  • 10% Xtra for Xtra Savings card-holders.
  • 5% Xtra when recharging via Money Market account.
  • Double airtime rewards on Xtra Savings airtime deals.

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