Vodacom signs its first MVNO customer

2 hours ago 27

Vodacom South Africa has built an enablement platform for mobile virtual network operators, signed up its first MVNO client and declared the platform “open for business”.

The client, Mr Price Mobile, is the first MVNO to be supported on Vodacom’s network, a spokeswoman for the telecommunications operator confirmed on Friday in an e-mailed response to questions from TechCentral.

She also confirmed that Vodacom has built an MVNE – or mobile virtual network enablement – platform to support the offering.

The move makes Vodacom the third mobile network operator in South Africa to support MVNOs after Cell C and MTN. Cell C pioneered the MVNO model in the local market and remains by far the largest host of MVNOs. Cell C CEO Jorge Mendes last week told the TechCentral Show that MVNOs are key to the company’s turnaround plan.

News of Vodacom’s launch comes as the MVNO market in South Africa expands, with a growing number of non-telecoms brands – including Shoprite, FNB and Capitec – offering products. MVNOs don’t build network infrastructure of their own but rather provide own-branded voice and data services in partnership with a network operator. The model has proved popular in Europe, in particular, where MVNOs have put downward pressure on retail consumer prices and expanded consumer choice.

Until now, Mr Price Mobile has utilised Cell C’s network infrastructure. It’s not clear whether the relationship with Cell C has ended. TechCentral has sought clarity on this and will update this article once feedback is received.

MVNO obligations

Vodacom declined to comment on whether Cell C was still hosting Mr Price Mobile but said: “We can confirm that they (Mr Price Mobile) are now able to activate all new customers on our network.”

Asked whether the partnership with Mr Price Mobile means it is now compliant with communications regulator Icasa’s requirement for successful bidders in the 2022 spectrum auction to host and provide support to MVNOs, Vodacom said: “The launch of Mr Price Mobile and the operational readiness of our MVNE platform, while being a major milestone for Vodacom’s ability to run a sustainable MVNO business, isn’t necessarily associated with the Icasa spectrum obligations.”

it said it has met its MVNO obligation stemming from the 2022 auction. “The obligation, which became effective on 1 June 2022, required licensees, in this instance Vodacom, to submit business plans to the authority within three to six months, and to ensure that the MVNOs are sustainable for a period of three years. Vodacom’s business plans, which were submitted within the required time frame, clearly stipulate the support we will provide to MVNOs for the period of three years.”