Telkom has officially entered the Mobile Virtual Network Operator (MVNO) market through a partnership with a renowned Mobile Virtual Network Enabler (MVNE) platform provider.

This agreement not only allows Telkom to comply with the Independent Communications Authority of South Africa's (Icasa) spectrum licence conditions but also facilitates the onboarding of multiple MVNOs, particularly those that are black-owned.

The MVNO landscape in South Africa is witnessing unprecedented growth, fuelled by the involvement of banks, insurance companies, and major retail chains eager to leverage the telecom sector's potential.

According to the Africa Analysis MVNO Report released in February 2024, the market’s revenue is projected to reach R83.6 billion, highlighting robust growth opportunities for new entrants.

Since the inception of the MVNO sector in 2006, subscriber numbers have surged by 51% year-on-year as of the end of 2023, amassing over 4.3 million users. The increasing consumer affinity for mobile services from financial services providers, retailers, and niche brands illustrates a shift towards custom mobile products and enhanced customer engagement strategies.

“The MVNO market is an exciting space, and we are eager to bring our network capabilities and infrastructure to enable and support new entrants,” said Lunga Siyo, Telkom CEO, Consumer and Small Business.

“We are streamlining MVNO entry with a structured, scalable single-platform model. This simplifies integration, reduces operational complexity, and ensures reliable network access.”

Telkom aims to foster sustainable business setups through its collaboration with experienced MVNE platform providers. The organisation positions itself as an enabler for potential partners, offering tailored solutions that encompass end-to-end customer engagement, innovative product design, and seamless technology integration.

“Our expansion into the MVNO market aligns with ouranchor brand purpose to seamlessly connect every South African and to enable and assist brands to create value for their existing and new customers irrespective of the industry in which they operate,” Siyo added.

“We see this as a long-term strategy to establish Telkom as a strong player in the MVNO space,” concluded Siyo. “We are excited to finally enter the market and collaborate with brands to develop MVNO solutions that benefit all parties, with the customer as our top priority.”

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