South Africa’s new mobile operator – with data for only R5

Old Mutual has officially entered the telecoms space, offering sim cards and data bundles which start at only R5.

With the launch of their Mobile Virtual Network Operator (MVNO) service, the insurance giant is the latest finanical service provider to enter the industry, alongside other companies like FNB and even Mr Price.

Their product, Old Mutual Connect, is hoping to deliver data and mobile services, with data packages starting at as little as R5.

Moses Duma, Old Mutual Finance Head of Customer Engagement, explained the purpose of this move on the Kaya Biz podcast.

Duma explained that Old Mutual entering the telecoms space is part of their “well-crafted” financial services strategy.

“It’s exciting times for Old Mutual.”

“For us, it’s about strengthening our relationship with our customers by building an ecosystem of value-added services.”

He said that for Old Mutual, this is only the beginning, and Old Mutual Connect is only one part of what they are building.

“We are not resting there. We are working on a new proposal, new features, and growth in terms of distribution networks and accessibility. So the customers can expect more as the future unfolds.”

“Really, it’s about giving our customers an opportunity to have access to affordable data and reliable connectivity through our partners.”

“We want to give value to our customers in every way.”

“We are a brand that lives in the communities, interacts with our customers every day, and we identified a need for our customers to actually have access to affordable data solutions.”

“It’s not just a stand-alone solution because it supports all our other propositions.”

These “propositions” include Old Mutual’s new digital bank, as well as their insurance and loan offerings.

“But we cannot do that and ask customers to connect with us on digital if they can’t afford or they can’t access the data.”

He explained that, as a result, providing their customers with affordable data enables them to interact with them through their digital channels.

“It also helps us to connect directly with our customers,” he said.

“If we’ve got our customers on our network, we’ve got direct communication with them, we understand what they are doing and they understand what we are up to, and we can actually communicate better and build better relationships with them.”

Duma explained that Old Mutual’s customers trust the company to deliver good, quality products and services.

“Our customers trust us. We are a strong brand that has been in existence for over 179 years.”

“This is no difference in the mobile network space.”

He said that although everyone can use this service, catering to lower-income people in South Africa remains a priority for them.

“The proposition is open to everyone. Anybody can walk into our branches and walk out with a SIM card. As simple as that.”

However, he explained that the mass market remains Old Mutual’s “anchor segment”, where they operate a lot in the insurance, funeral, and now, the data space.

“Our proposition is actually built around understanding the needs of our mass market customers.”

He explained that there are two of key pillars which are important to Old Mutual Connect.

“Firstly, the SIM card itself is very cheap. It’s R5.” There are many Old Mutual locations located in the communities themselves, which makes it very easy for anyone to buy one.

Secondly, he said that there are a number of deals which give value to customers once they have signed up for the service. 

For example, customers get a sign-up bundle of 1GB free, simply for choosing Old Mutual’s SIM card.

“And we don’t stop there. If you buy any data from us, we’ve got a proposal called double up bundle.”

As part of this bundle, Old Mutual gives the customer the same amount of data they buy for free. “That’s doubling up whatever you spend with us.”

Duma explained that there are also other bundles available to customers who buy over R50 ofdata or interact with the company.

A major draw of their offering is also the limitless nature of when customers can use the data they buy. 

“The data that you buy from us doesn’t expire. So, there’s no limitation; you can buy as much as you want, and it doesn’t expire,” he said. 

“That’s how we want to give value to our customers.” 

Many South Africans have become disillusioned with their mobile operators which seem overpriced and unreliable. 

High unemployment rates, the country’s cost of living crisis and low wages have prompted many people to carefully consider how much they spend on internet connectivity.

For some, mobile data prices are too high to even consider in the first place. 

“There’s two core motivating factors for us,” Duma said. “One is to enable our customers to participate meaningfully in the economy.”

In order to do that, “they need data, and they need connectivity”.

“So we are giving them that.”

“The second one, of course, is interacting with us.”

However, he said that their service is not only limited to that, and customers will be able to use their data to communicate with whoever they want. “That’s your data, you can use it for that.”

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