New mobile virtual network operator (MVNO) Spot Mobile, which was recently launched by the founders of fintech firm Spot Money, is targeting underserviced communities in South Africa.
Launched in January, Spot Mobile piggybacks on the Cell C mobile network.
The MVNO was established by Spot Money founders Sean and Don Bergsma and Andre Hugo. The trio launched Spot Money in 2021 following the 2020 acquisition of Virgin Money South Africa by a local private equity firm, in partnership with the local executive management team.
According to a recent report by Africa Analysis, South Africa is set to witness an uptick in MVNO SIM cards in the coming years.
Since MVNOs don’t have to invest in building and maintaining network infrastructure, they can often offer competitive pricing and flexible plans without the same level of investment required by traditional MNOs.
They play a significant role in increasing competition in the mobile telecoms market, providing consumers with more choice and often more affordable options for mobile phone services.
Other players in the South African market include FNB Connect, Capitec Connect, Mr Price Mobile, PnP Mobile and Standard Bank Mobile.
“We chose Cell C as our network provider for Spot Mobile because of their extensive coverage, reliable service and competitive pricing. This partnership allows us to offer our customers excellent connectivity and value for money,” Musa Nyangiwe, community manager for the Spot brands, tells ITWeb via e-mail.
“Spot believes that ordinary South Africans have the right to achieve financial freedom and upward mobility. We realised, while building Spot Money, that many South Africans are struggling with the rising cost of living and, as such, look for value from the brands they trust.”
Nyangiwe adds that airtime and data in SA are ranked among the most expensive in Africa, so “we decided we could do more to help the ordinary South African make their money work for them, by building an affordable solution with Spot Mobile.
“The relationship between the two is symbiotic in nature. We reward our Spot Money users with free airtime for every transaction they make with their Spot Money debit card through Airtime Rewards. Many of our users no longer buy airtime or data, and when they do, they can purchase a Spot Mobile plan from the Spot Money app at competitive prices, with no contracts.”
Just like with Spot Money, Spot Mobile’s target market is the underserved community, he notes, adding: “On a more granular level, we are targeting Gen Z and younger millennials, as we feel they are the most likely to resonate with our product offering.”
According to Nyangiwe, the local MVNO market has experienced significant growth over the years, driven by increasing demand for flexible and cost-effective mobile solutions. More consumers are seeking alternatives to traditional network operators, which have dominated the market in a duopoly.
“All of this has led to the emergence of numerous MVNOs. Spot Mobile is the newest kid on the block, contributing positively to this growth by offering innovative and personalised mobile services tailored to specific customer needs, enhancing customer choice and satisfaction.
“We have co-created our deals using feedback from the consumer in real-time. We are data-driven, no pun intended, in that we look at where our customers are experiencing the most friction and we build products to solve those pain points.
“Spot Mobile is currently running a pretty aggressive offer. We offer free R50 airtime for three months for all new customers. After the three months, it's R5 per month for R50 airtime and they can cancel anytime.”
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