Telkom Enters MVNO Market with Strategic Partnerships to Enhance South Africa’s Mobile Landscape

Telkom has entered the Mobile Virtual Network Operator (MVNO) market by partnering with a Mobile Virtual Network Enabler (MVNE) platform provider, known for its successful track record in the South African market. The signing of the MVNE platform agreement allows Telkom to comply with ICASA’s requirements, while also facilitating the identification and onboarding of several MVNOs to enhance its competitive edge in the MVNO sector. ICASA mandates that mobile network operators like Telkom support at least three black-owned MVNOs as part of their spectrum license conditions.

The MVNO market in South Africa is experiencing rapid growth, with banks, insurance companies, and major retailers contributing to the rising competition. According to the Africa Analysis MVNO Report (February 2024), the market’s potential revenue is estimated at R83.6 billion, underscoring significant growth opportunities.

Since its establishment in 2006, the sector has experienced consistent growth, with subscriber numbers increasing by 51% year-on-year by the end of 2023, reaching 4.3 million users. This growth is driven by consumer affinity, particularly towards financial services providers, retailers, and niche brands. These businesses are keen on creating unique branded mobile products and services, developing new value propositions, and offering value-added services to enhance customer engagement for their customers.

“The MVNO market is an exciting space, and we are eager to leverage our network capabilities and infrastructure to enable and support new entrants,” said Lunga Siyo, Telkom CEO, Consumer and Small Business. “We are simplifying MVNO entry with a structured, scalable single-platform model, which reduces operational complexity, ensures reliable network access, and streamlines integration.”

Together with its trusted platform provider, Telkom aims to strengthen its business, offer relevant solutions, and support MVNOs in establishing and building sustainable businesses and a strong presence in the market. The company remains open to discussions with potential partners and is committed to providing optimal support and technological capabilities to ensure the success of MVNOs.

“Our move into the MVNO market aligns with our core purpose to seamlessly connect every South African and assist brands in creating value for their existing and new customers, no matter the industry,” says Siyo.

Call for potential MVNO partners

Telkom invites brands interested in launching MVNOs to explore partnership opportunities. They will gain access to a reliable platform that supports end-to-end customer engagement and management, unique product design and development, as well as seamless network integration and technology enablement.

Potential partners can expect:

• Flexible onboarding: Tailored enablement and support based on customer technology integration preferences and requirements, unique product design and development, and enhanced customer experience and support based on their specific customer journeys. 
• Strong network capabilities: Access to Telkom’s high-quality network and roaming partners. 

“We view this as a long-term strategy to establish Telkom as a dominant player in the MVNO space,” said Siyo. “We are excited to enter the market and collaborate with brands across industries to develop and enable MVNO solutions that benefit all parties, with the customer at the center of it all.”

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