Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Discovery ranks cybercrime as its top risk, citing frontier AI

      Discovery ranks cybercrime as its top risk, citing frontier AI

      21 October 2026
      Treasury backs down on crypto rules after 'thousands' of comments - Enoch Godongwana

      Treasury backs down on crypto rules after ‘thousands’ of comments

      21 October 2026
      Godongwana cuts fuel levy again, with diesel getting the bigger break

      Godongwana cuts fuel levy again, with diesel getting the bigger break

      21 October 2026
      Bolt EVs hit Sandton and the OR Tambo airport run

      Bolt EVs hit Sandton and the OR Tambo airport run

      21 October 2026
      Treasury puts R150-million behind MyMzansi government app - Enoch Godongwana

      Treasury puts R150-million behind MyMzansi government app

      21 October 2026
    • World
      OpenAI turns the tables on Apple in trade secrets fight

      OpenAI turns the tables on Apple in trade secrets fight

      15 October 2026
      Google's Gemini 4 Argon is finally here

      Google’s Gemini 4 Argon is finally here

      14 October 2026
      Apple's new HomeView smart home hub

      Apple takes another shot at the smart home

      13 October 2026
      AI is now holding up the world economy, says IMF

      AI is now propping up the world economy, says IMF

      12 October 2026
      SpaceX takes aim at US wireless carriers with spectrum acquisition

      Starlink is coming for your mobile operator

      9 October 2026
    • In-depth

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
    • TCS
      W&W | LDV's Gerhard Moolman on electric bakkies, fleet orders and 'school fees'

      W&W | LDV’s Gerhard Moolman on electric bakkies and fleets

      9 October 2026
      TCS | Frogfoot sees bigger fibre deals coming - TechCentral Show guests Abraham van der Merwe and Shane Chorley

      TCS | Frogfoot sees bigger fibre deals coming

      8 October 2026
      Meet the CIO | Vodacom's Mohamed Sami on the agentic future

      Meet the CIO | Vodacom’s Mohamed Sami on the agentic future

      5 October 2026
      Lexi Novitske, general partner at Norrsken22, on the TechCentral Show

      TCS | Norrsken22’s Lexi Novitske on how China is winning African tech

      1 October 2026
      TCS | Dominic White and Adam Ely on AI agents going rogue

      TCS | Dominic White and Adam Ely on AI agents going rogue

      29 September 2026
    • Opinion
      Nonkqubela Thathakahle Jordan-Dyani

      Why cybersecurity is now a national security issue for South Africa

      15 October 2026
      When a machine can choose, who does it become? Fanie van Rooyen

      When a machine can choose, who does it become?

      9 October 2026
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Let South Africans jailbreak their way to digital sovereignty

      5 October 2026
      South Africa's next energy crisis is in the accounts department - Craig Holmes

      South Africa’s next energy crisis is in the accounts department

      29 September 2026
      The steam engine lesson AI doomsayers keep missing - Sam Clarke

      The steam engine lesson AI doomsayers keep missing

      28 September 2026
    • Company News
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Publishared
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech and payments
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » AppChat to launch MVNO, slash call rates

    AppChat to launch MVNO, slash call rates

    By Editor16 March 2012
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    John Holdsworth

    AppChat, the mobile voice specialist founded recently by former ECN Telecommunications CEO John Holdsworth, will launch a mobile virtual network operator (MVNO) later this year, TechCentral has learnt exclusively.

    The company is promising, in the process, to slash the cost of mobile calls in SA.

    Holdsworth isn’t saying yet which network operator AppChat is partnering with to launch the MVNO, but says this will be disclosed in about a month from now.

    AppChat will be SA’s second MVNO after Virgin Mobile, which piggybacks on Cell C’s network. Virgin Mobile has only managed to grab a tiny slice of SA’s mobile market, but Holdsworth says AppChat’s approach will shake up the MVNO model — and the telecommunications market — by slashing the cost of mobile telephony by up to 50% and offering high-quality voice products. The company plans to begin selling services to consumers in October.

    AppChat will build what Holdsworth calls a “hybrid” voice offering, where calls are routed over its network partner’s 3G network in areas where there is sufficient bandwidth available. Calls will be routed over traditional mobile GSM networks outside 3G coverage areas. Calls over 3G will use a high-definition voice codec (for technical readers, AppChat will use the G.722.1 Annex C codec).

    The company is developing an application for smartphones that manages calls and allows subscribers to control their accounts and services and see their call records and billing information in real time.

    The software will be available on devices running Apple’s iOS, Google’s Android, Research in Motion’s BlackBerry OS and Microsoft’s Windows Phone 7. A version for Symbian is not planned.

    Holdsworth says he is modelling AppChat on a company called Telmore, which is the largest MVNO in Denmark. At the end of 2010, Telmore had more than 700 000 subscribers and 10,4% of the Danish mobile market.

    He says the barriers to launching successful MVNOs in SA have been lowered significantly, in large part to the reduction in termination rates — the fees the mobile operators charge each other and other players to carry calls onto their networks. Holdsworth was a champion of reducing the rates, which will fall to 40c/minute in March 2013, from R1,25/minute three years ago.

    “MVNOs can now compete on price,” says Holdsworth. “They can make their off-net minutes cheaper than the incumbents’ on-net minutes.”

    The fact that mobile operators are moving from circuit-switched to packet-based networks using the Internet protocol is also a fact playing in favour of AppChat, he says. “We are already seeing carriers like Orange in Europe using data networks to carry voice. It’s just a matter of time before that happens in SA.”

    In addition, plans by the Independent Communications Authority of SA to introduce wholesale and open-access mobile networks in SA will help shake up the market, Holdsworth says. Together, these developments “will result in the biggest change in SA’s mobile market in 15 years and it will happen over the next two or three years. AppChat is positioning itself to take advantage of that.”

    He says many MVNO players have failed to run “lean-and-mean” operations and for that reason have not been particularly successful. “The really successful MVNOs worldwide have operated along the no-frills model. Telmore completely reconfigured the mobile market in Denmark with a low-cost and no-frills operation.”

    Unlike traditional MVNOs, however, AppChat will install its own core network switches and will negotiate its own interconnection agreements with the network operators. “This will allow us to have more control and manage our costs better,” Holdsworth says. The company is implementing a core IP network with points of presence in Johannesburg, Durban and Cape Town.

    Other than cheaper calls and the promise of high-quality voice, AppChat will entice customers to use the service by not locking them into long-term contracts.

    Though it will offer discounted and free smartphones, consumers will be free to switch to other providers at any time. “There will be no contract lock-in for the airtime portion of the contract,” Holdsworth says.

    The company will also offer prepaid options.

    Holdsworth is promising simple package structures that are easy to understand. AppChat will offer a single per-second all-day rate for off-net calls and will not provide the separate in-bundle and out-of-bundle rates favoured by the big network operators.

    The cost of data for calls that are routed over 3G rather than GSM will be included in the call tariff, meaning consumers won’t have to buy separate data bundles for their voice needs.

    AppChat will offer its own branded Sim cards through traditional retail channels and also directly using couriers. “We will try to serve people through electronic channels where possible.”  — Duncan McLeod, TechCentral

    • Subscribe to our free daily newsletter
    • Follow us on Twitter or on Google+ or on Facebook
    • Visit our sister website, SportsCentral (still in beta)
    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    AppChat Cell C John Holdsworth Telmore Virgin Mobile
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleAn incredible Journey
    Next Article Congo fixer wins success-fee claim against Vodacom

    Related Posts

    Icasa

    Icasa’s R100-million surplus and its empty toolbox

    13 October 2026
    Shoprite takes on the banking apps with airtime on Sixty60

    Shoprite takes on the banking apps with airtime on Sixty60

    9 October 2026
    DNI's R500-million bet on Mission Mobile is mostly debt - Timothy Strike

    Behind DNI’s R500-million bet on Mission Mobile

    5 October 2026
    Company News
    Innovex 2026: taking opportunity to where potential lives

    Innovex 2026: taking opportunity to where potential lives

    21 October 2026
    How to choose a .co.za domain without paying more later

    How to choose a .co.za domain without paying more later

    20 October 2026
    Winners, from left: Zandile Monaisa (Rand Refinery), Sibongakonke Kheswa (PSG Capital), Stefan Links (Forestry South Africa), Thabang Modiba (Mondelez International), Charmaine Ncube (Razor PR), Shaun Burger-Smal (Bestmed Medical Scheme), Nandipha Ngcobo (Transnet), Tracy Mulwela (Vodacom), Cheryl-Lynn Freeman (Mzansi Business Services), Yasheen Harrielall (Zutari), Valentine Mabaso (Taonga Business Group) and Thabang Thlaku (African Rainbow Minerals). Image: Rising Star Awards

    Celebrating South Africa’s rising stars: the leaders shaping what comes next

    19 October 2026
    Opinion
    Nonkqubela Thathakahle Jordan-Dyani

    Why cybersecurity is now a national security issue for South Africa

    15 October 2026
    When a machine can choose, who does it become? Fanie van Rooyen

    When a machine can choose, who does it become?

    9 October 2026
    Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

    Let South Africans jailbreak their way to digital sovereignty

    5 October 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Innovex 2026: taking opportunity to where potential lives

    Innovex 2026: taking opportunity to where potential lives

    21 October 2026
    Discovery ranks cybercrime as its top risk, citing frontier AI

    Discovery ranks cybercrime as its top risk, citing frontier AI

    21 October 2026
    Treasury backs down on crypto rules after 'thousands' of comments - Enoch Godongwana

    Treasury backs down on crypto rules after ‘thousands’ of comments

    21 October 2026
    Godongwana cuts fuel levy again, with diesel getting the bigger break

    Godongwana cuts fuel levy again, with diesel getting the bigger break

    21 October 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}
    🇿🇦 Sign up to the TechCentral newsletter