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Telkom South Africa is making a strategic move into the Mobile Virtual Network Operator (MVNO) space by partnering with a leading Mobile Virtual Network Enabler (MVNE) platform provider. This initiative not only strengthens Telkom’s business positioning but also aligns with South Africa’s telecommunications regulations while fostering the growth of new MVNOs, particularly black-owned enterprises.
The MVNO market in South Africa is experiencing rapid expansion, with banks, insurance firms, and major retail brands aggressively entering the sector. As demand for mobile services continues to surge, industry reports predict substantial revenue growth. According to Africa Analysis, MVNO revenue is projected to reach R83.6 billion by 2024, highlighting significant market potential.
Since the launch of MVNOs in South Africa in 2006, subscriber numbers have seen exponential growth. By the end of 2023, the market recorded a 51% year-on-year increase, with over 4.3 million users opting for mobile services from financial institutions, retailers, and specialized brands. This trend underscores a rising consumer preference for tailored mobile solutions that cater to specific needs.
Telkom’s CEO, Lunga Siyo, expressed enthusiasm about the company’s expansion into the MVNO space. “The MVNO market is an exciting space, and we’re ready to support new players with our network and infrastructure,” he stated. Telkom is facilitating market entry for emerging MVNOs through a scalable and streamlined platform, simplifying integration, operations, and network access.
Beyond providing network infrastructure, Telkom’s collaboration with MVNE providers ensures a holistic business model for MVNOs. This includes end-to-end customer engagement, innovative product development, and seamless technology integration—enabling brands across various industries to enhance customer interactions and deliver value-driven mobile services.
This strategic initiative marks a long-term commitment for Telkom, positioning the company as a key player in the evolving MVNO landscape. By leveraging its infrastructure and expertise, Telkom aims to foster a competitive and inclusive mobile market, driving sustained innovation and industry growth.
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