The rise of Mobile Virtual Network Operators (MVNOs) in South Africa might be seen by some as major competition to legacy networks.
But, as Calvin Collett, founder and CEO of Melon Mobile points out, MNOs and MVNOs need each other to build innovative, cost-effective and future-proof mobile network solutions for the modern consumer.
With just under 120-million active cellular mobile connections in South Africa (the equivalent to 187% of the population) in early 2024, a strong Mobile Virtual Network Operator (MVNO) is not just a luxury for South Africa – it’s a necessity.
Why? The country’s mobile market has, for close to 30 years, been dominated by a few large players, which, while reliable, are often criticised for having expensive data costs, limited customisation, and a lack of innovation in customer experience.
At its core, without MNOs, there would be no MVNOs. Melon Mobile, like every other virtual network operator, leverages MNO infrastructure. The model they work on leases bandwidth or wireless capacity from larger network operators and provides mobile services to consumers at substantially reduced prices.
Because they don’t have to deal with infrastructure and operational costs associated with running a network, MVNOs have the freedom to innovate on customer experience, pricing, and service offerings without the burden of owning these types of expensive network infrastructure.
What makes this type of model exciting is that MVNOs can disrupt the status quo by offering consumers greater choice, affordability, and personalised mobile services. More than that, a thriving MNVO market means consumers can choose better options and prices, creating a fairer mobile ecosystem for everyone.
While the concept of MVNOs may seem new, South Africa has had at least ten new MVOs in the past ten years. However, it is only in the last year or two that the country has seen a flood of these types of providers, with Melon Mobile being one of them. According to estimations, the number of MVNO SIMs in use in the country surged to 4,3-million in 2023, a massive 51% increase compared to the previous year, and projections suggest the number of SIMs could reach 15-million by 2028.
This is excellent news for consumers because one of the most significant advantages MVNOs bring to the table is the ability to target specific customer needs more effectively.
In South Africa, an environment where affordability and accessibility are key, the role of an MVNO becomes vital. For example, Melon Mobile has the flexibility to offer consumers fully customisable data, voice and text plans that suit their pocket – with the option to change these plans month-to-month, depending on the consumer’s budget.
When you’re locked into a traditional network supplier contract, there is virtually no room for flexibility, no matter the circumstances.
With revenue in the mobile market alone projected to reach just over $15-billion by 2028, MNVOs are injecting new energy into the sector and offering consumers real benefits: better prices, more tailored services, and a telecom landscape that serves their needs rather than dictating them.