Telkom launches mobile virtual network operator platform

Telkom has entered the South African mobile virtual network operator (MVNO) market through a partnership with a Mobile Virtual Network Enabler (MVNE) platform provider.

The partially state-owned telecommunications giant did not disclose the MVNE’s name but said it had a proven track record in the South African market.

Telkom explained that signing the MVNE platform agreement would enable it to meet the regulatory stipulations by the Independent Communications Authority of South Africa (Icasa).

It would also enable the identification and onboarding of multiple MVNOs to strengthen its competitive position in the market, Telkom said.

ICASA requires mobile network operators like Telkom to support at least three black-owned MVNOs as part of their spectrum licence conditions.

South Africa’s MVNO market is expanding rapidly, with banks, insurance firms, and major retailers driving competition in the sector.

BMI-T’s 2024 MVNO Report said subscribers at virtual operators almost doubled from just over 2.5 since 2022 to under 5 million last year. The firm projected that MVNO subscribers would grow to over 10 million by 2029.

“Since the sector’s inception in 2006, it has experienced steady growth, with subscriber numbers increasing by 51% year-on-year by the end of 2023, reaching 4.3 million users,” said Telkom’s CEO for consumer and small business, Lunga Siyo.

Siyo said this growth was driven by consumer affinity, particularly to financial services providers, retailers, and niche brands.

“These businesses seek to create unique branded mobile products and services, develop new value propositions and value-added services to enhance customer engagement for their own customers,” he said.

“The MVNO market is an exciting space, and we are eager to bring our network capabilities and infrastructure to enable and support new entrants.”

Siyo said Telkom was streamlining MVNO entry with a structured, scalable single-platform model.

“This simplifies integration, reduces operational complexity, and ensures reliable network access,” he said.

Telkom invited brands interested in launching MVNOs to explore partnership opportunities.

“We see this as a long-term strategy to establish Telkom as a strong player in the MVNO space,” said Siyo.

“We are excited to finally enter the market and collaborate with brands across industries to develop and enable MVNO solutions that benefit all parties, with the customer as the top priority.”