Mikkel Vinter, founder & CEO\u00a0Friendi Group says that the group is on track to pump up to\u00a0$50 million into operations in Africa, including\u00a0Virgin Mobile South Africa.<\/p>\n
In June, Virgin Group\u00a0merged with the Friendi Group, the Middle East-focused mobile virtual network operator, to create Virgin Mobile Middle East and Africa, based in Dubai.<\/p>\n
Vinter shrugged off the notion that the Virgin brand might struggle in SA amid increased competition following the launch of Telkom’s mobile arm, 8ta, and the resurgence of Cell C under\u00a0Alan Knott-Craig.<\/p>\n
“We see South Africa as a big market, penetration is still going up. We see that the Virgin brand has its place in South Africa. It has a\u00a0different\u00a0cost base, and can thrive on a more\u00a0focused\u00a0strategy which does not require many millions (of subscribers) to turn it into a profitable business.”<\/p>\n
Virgin Mobile SA is reliant on Cell C’s network, and says its subscriber base is\u00a0approaching\u00a0400,000.<\/p>\n
In July, it announced\u00a0that it would reduce its store footprint to just eight locations as part of a plan to improve its customer experience. The process was expected to conclude\u00a0during the first half of 2013.<\/p>\n
As part of this revised strategy, Vinter said that Virgin Mobile aims to tie up new third party distributors in 2013, adding to the number of\u00a0existing\u00a0partners. \u201cWe think that is the way to play.”<\/p>\n
He also noted that the group has undergone a transition period at management level, having appointed a new CEO in 2012. “We are quite optimistic,\u201d he said of the group\u2019s prospects in SA. \u201cWe are looking at a soft growth and are putting resources behind that by making upgrades to our (billing) systems.”<\/p>\n
Vinter confessed that many of the company\u2019s shops had been situated in less optimal locations. \u201cWe believe that we have kept the best shops.\u201d<\/p>\n
He said that, by closing those less successful shops, the group would aim to \u201cdivert some of that money to convert deals with third party distribution\u201d.<\/p>\n
\u201cWe believe we have a strong platform. It (Virgin Mobile) does have a high level of awareness,” Vinter said.<\/p>\n
Vinter said that\u00a0the group was on track to raise $100 million from investors and private equity groups to roll out and enhance the Virgin brand. The cash would be split evenly between Latin America, and Africa.<\/p>\n
It was reported that Virgin Mobile aims to expand to Brazil, Colombia, Chile, Poland, and Oman. It currently has 18 million subscribers in nine countries.<\/p>\n
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