MTN says that concerns about First National Bank (FNB) entering into its space as mobile virtual network operator (MVNO) would depend on its offerings to the market.<\/p>\n
The bank is expected to unveil its plans to launch its own MVNO soon, according to a number of independent sources.<\/p>\n
FNB would join Mr Price and Virgin Mobile as the country\u2019s third MVNO and is believed to be partnering with Cell C for network coverage.<\/p>\n
MTN Group president and CEO, Sifiso Dabengwa, went as far as to call the bank a competitor should its plans come to fruition. “You always have to be concerned about a competitor,” Dabengwa told BusinessTech last week, adding, however, that it would also depend on FNB’s offerings.<\/p>\n He also stressed that MVNOs would increasingly feel margin pressures amid an ongoing price war between the three big operators in MTN, Vodacom, and Cell C.<\/p>\n FNB already has the necessary licences to be a telecommunications provider, and can already provide voice and data services. The bank is also one of the largest bulk SMS users and airtime distributors.<\/p>\n It has already sold over 200,000 smart devices since launching in the space in 2011, while it added mobile accessories to its sales line in 2013.<\/p>\n In April, the bank said that while airtime continues to be FNB Service Provider\u2019s strongest pre-paid seller, data bundle purchases have risen sharply over the last three years.<\/p>\n In 2012 data bundles sales were only 6% of airtime sales, however, this figure rose to 12%, it said.<\/p>\n Banks have a data advantage over mobile operators, knowing more about their customers, their financial position and their possible requirements.<\/p>\n Financial institutions are coming under pressure of their own from tech e-commerce giants, social lenders, and mobile operators.<\/p>\n In June, MTN and retailer Pick n Pay announced a new partnership to bring low-cost banking to consumers excluded from the formal banking system. MTN also launched a Mobile Money Visa card for its customers in South Africa.<\/p>\n Through a Pick n Pay SIM card, customers can send and receive money via mobile phone, while also using their accounts to pay municipal bills, purchase prepaid electricity and airtime.<\/p>\n Salaries can be deposited into the account, and there is no minimum balance requirement, MTN said.<\/p>\n MTN takes on banks with free money transfer service<\/strong><\/a><\/p>\n FNB, Cell C deal rumour creates buzz<\/strong><\/a><\/p>\n FNB set to launch its own mobile network<\/strong><\/a><\/p>\n
\n<\/span><\/p>\nMore on FNB and MTN<\/h3>\n