A new report from BMIT shows the MVNO market is poised for further strong growth in the next five years.
to provide services to niche customer segments, are “emerging as the primary engines of market growth” in South Africa’s telecommunications industry.“The MVNO market has almost doubled in size in the last two years,” said Christopher Geerdts, MD at BMIT, in a statement on Thursday.
“BMIT’s subscriber estimates show the market is passing its inflection point and is now set for ongoing growth, while evolving into a healthy, vibrant, multi-dimensional, value-adding contributor to mobile operators, big brand companies and, ultimately, to customers.” “Whether the MVNO market will go beyond 10% market share over the longer term is quite possible, but depends on a number of factors considered in the report,” said Nel.said Telkom’s recently launched wholesale MVNO services, along with Vodacom’s entry into the wholesale market – Vodacom onboarded Mr Price Mobile in September – has added healthy competition at the wholesale level that will drive market growth.
The company’s research shows that the nature of MVNOs has also changed as these businesses become more sustainable. Unlike the “price arbitrage” MVNOs of the past that competed by offering lower prices – and simply “did not survive” – modern MVNOs are leverage existing brands as a base for growth and using mobile services to provide added value that improves stickiness in their core business. BMIT identified digital enablement, customer engagement and brand loyalty as some of the key drivers.
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