MVNOs are emerging as the primary engines of mobile market growth in South Africa.
Mobile virtual network operators are seeing renewed interest in South Africa and are emerging as the primary driving factor of the country’s mobile market growth.
According to the report’s lead author, Johan Nel, this number is expected to grow to between 11 million and 12 million by 2029, yielding a compound annual growth rate of 18% and outpacing the mobile operator market. This is evident because many of the 23 MVNOs have switched operators or have adopted a multi-operator strategy.
The report argued that the MVNO market has shifted away from solely focusing on subscriber numbers and has turned its attention to building sustainable businesses from existing customer bases, driving retention for its core business. The report noted that average revenue per user levels are set to increase due to a focus on what it has identified as bank-centric, retail-centric, and Internet service provider -centric MVNOs.MVNOs are also beginning to zone in on the small and medium enterprise business segments.
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