MTN has announced the launch of its mobile virtual network operator (MVNO) service.
Instead of building its own network, an MVNO uses the mobile network infrastructure provided by a mobile network operator such as MTN to offer mobile products and services.
While it does not have its own network, an MVNO controls distribution and is responsible for customer support, billing, product development and its value-added services. Examples include FNB Connect which currently uses Cell C’s network.
With its extensive national network that covers rural areas, MTN said it will offer MVNO partners a high-quality network experience and opportunity to deliver innovative solutions that reach even more South Africans.
“We expect MVNO subscribers across the country to double over the next five years, with several large players introducing offerings.
“MTN is excited to be an enabler of this further growth path by putting our network capacity to work, as the rapid pace of digital change requires more agile and tailored solutions so that more people can benefit,” said Quintus De Beer, acting executive for Managed Network Services at MTN.
The new service also opens up an opportunity for MTN to explore specific bespoke projects through strategic approved MVNO partnerships, he said.
“Worldwide people have benefited from the experiences that MVNOs bring to the market and with the unique challenges South Africa face, we see this as an important platform to enable a better life for all,” he said.
De Beer said that new MVNO businesses will assist to create job opportunities and secondary markets to contribute to the broader South African economy.
“We believe everyone deserves the benefits of a modern, connected life. By entering the MVNO space, we are growing South Africa’s digital eco-system by enabling more value and services for consumers.
“This makes business sense, as we are putting the best network to work for more people, in a managed and sensible manner,” said De Beer.