Africa’s mobile virtual network operator (MVNO) industry is now estimated at around $4-billion, with a projected 6% CAGR through 2031.
In South Africa alone, MVNOs served approximately 4,3-million SIMs by the end of 2023, marking 51% year‑on‑year growth and a R4,3-billion market value.
But, according to Yaron Assabi, founder and CEO of MVNE, success is no longer about speed to market or brand value. It comes down to executing on five critical fronts.
Create a strong, differentiated value proposition
“You cannot compete with mobile network operators on price. MVNOs need a sharply defined value proposition that is relevant, unique, and hard to replicate,” says Assabi.
One example is DStv Internet, which contributes more than 8% of the data traffic for its host network. By integrating its core streaming service into its data offering, it delivered tangible value to customers and built a defensible differentiator.
“DStv combined entertainment and connectivity, something a traditional operator could not easily match,” he says.
Provide exceptional customer service
Customer experience remains a decisive battleground. Assabi notes that MVNOs have an opportunity to outperform incumbents on service quality, particularly through data-driven personalisation and frictionless support.
“Exceptional customer experience is non-negotiable. Self-service apps, predictive analytics, and meaningful customer engagement platforms are where the real differentiation lies,” says Assabi.
For example, a retailer could trigger in-store discounts via app notifications based on geolocation, or a bank could reward timely credit card payments with mobile data, turning telecoms into a loyalty engine.
Take a data-driven approach
A data-driven mindset, says Assabi, is central to both retention and revenue growth.
“Data is not just for marketing. It should also inform product innovation, pricing, and operations. MVNOs must know exactly who their customers are and how to meet their evolving needs.”
From triggering location-based offers to designing tiered data bundles based on actual consumption, data helps MVNOs move faster and smarter.
“An MVNO that understands how its customers behave can build loyalty through relevance. Whether that is offering free data for meeting spend thresholds or pushing personalised in-app rewards, the goal is to make customers feel seen and valued,” he adds.
Embrace agility and adaptability
Agility is another key advantage MVNOs must not squander.
“If you approach a major operator with a new product idea, it might take 18 to 24 months to get it live. MVNOs can do it in two weeks. That is the edge.”
He urges operators to build processes that enable continuous reinvention based on market signals and customer feedback.
Forge strong partnerships with MNOs and MVNEs
But agility alone is not enough. Strong partnerships with mobile network operators (MNOs) and mobile virtual network enablers (MVNEs) are essential to sustaining and scaling an MVNO.
“Telecoms is not a plug-and-play business,” warns Assabi. “If connectivity is not your core business, do not try to go it alone.”
As the technology partner behind several of South Africa’s most successful MVNOs, MVNE provides the critical back-end that many entrants underestimate, handling everything from billing infrastructure and network integration to SIM provisioning, compliance, and technical support.
“We have seen brands with large customer bases and strong loyalty struggle because they tried to build the telco layer themselves. That is a mistake. Our role is to simplify the complexity so that businesses can focus on what they do best, delivering value to their customers,” continues Assabi.
Avoid the common pitfall
He also flags a common mistake: underestimating the model’s complexity.
“Many brands rush in thinking it is just another product line. It is not. If you do not understand your burn rate, resource requirements, or how long it will take to reach profitability, you are setting yourself up to fail.”