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
      Court bid could open the door to Starlink without new law

      Court bid could open the door to Starlink in South Africa

      11 November 2026
      Telkom wants Icasa's BEE rules eased for everyone, Starlink included

      Telkom wants Icasa’s BEE rules eased for everyone, Starlink included

      11 November 2026
      TCS | Pick n Pay fights back in online grocery wars - Vince Viviers

      TCS | Pick n Pay fights back in online grocery wars

      11 November 2026
      Malatsi briefed as power outage hits the SABC

      Malatsi briefed as power outage hits the SABC

      11 November 2026
      Mohammed Raiyan Sharif, left, and Mitchell Cox

      Wits uncovers a hidden effect in everyday optical fibre

      11 November 2026
    • World
      John Ternus faces first big test as Apple CEO - John Ternus

      John Ternus faces first big test as Apple CEO

      2 November 2026
      Alleged Israeli spy company heavily targeted Starlink users

      How online ads were used to hunt Starlink users

      28 October 2026
      Anthropic's IPO stands alone

      Anthropic’s IPO stands alone

      23 October 2026
      PHP flaws trigger global scramble as hackers pounce

      PHP flaws trigger global scramble as hackers pounce

      22 October 2026
      OpenAI turns the tables on Apple in trade secrets fight

      OpenAI turns the tables on Apple in trade secrets fight

      15 October 2026
    • In-depth
      Ducking hell: inside Apple's hidden list of words the iPhone won't suggest

      Ducking hell: inside Apple’s hidden list of words the iPhone won’t suggest

      6 November 2026
      Why investors are souring on Netflix

      Why investors are souring on Netflix

      22 October 2026

      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
    • TCS
      TCS | Nomvuyiso Batyi on the battle over Sim registration - Nomvuyiso Batyi

      TCS | Nomvuyiso Batyi on the battle over Sim registration

      9 November 2026
      TCS+ | Old Mutual's Celiwe Ross on leading people through AI - Old Mutual

      TCS+ | Old Mutual’s Celiwe Ross on leading people through AI

      6 November 2026
      TCS+ | How the Apple ecosystem drives productivity for SMEs - Sudesh Pillay iStore and Kevin McLennan

      TCS+ | How the Apple ecosystem drives productivity for SMEs

      6 November 2026
      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      26 October 2026
      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs - Réan van Niekerk, Metacom

      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs

      23 October 2026
    • Opinion
      Icasa's Sim rules need a privacy backstop - Lloyd Matthew and Heinz Vollmer

      Icasa’s Sim rules need a privacy backstop

      5 November 2026
      AI's boardroom honeymoon is over - Gary Stocks

      AI’s boardroom honeymoon is over

      22 October 2026
      Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

      Before South Africa licenses Starlink, it should look at Ukraine

      21 October 2026
      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
    • 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

    Rift opens between MTN and Cell C

    Rift opens between MTN and Cell C

    9 November 2026
    TCS | Nomvuyiso Batyi on the battle over Sim registration - Nomvuyiso Batyi

    TCS | Nomvuyiso Batyi on the battle over Sim registration

    9 November 2026
    MTN South Africa's margins climb as its customer base shrinks

    MTN South Africa’s margins climb as its customer base shrinks

    9 November 2026
    Company News
    Coen Jonker receives the Lifetime Achievement Award at the inaugural SA FinTech Awards in 2025, presented by Darren Franks, CEO of Finasa

    Finasa’s SA FinTech Awards: banks and fintechs, building together

    11 November 2026
    The hidden risks of fragmented IT and unenforced SLAs - ITC Systems Durban

    The hidden risks of fragmented IT and unenforced SLAs

    10 November 2026
    Why AI-powered customer experience will decide South Africa's festive retail winners - CM.com

    Why AI-powered customer experience will decide South Africa’s festive retail winners

    10 November 2026
    Opinion
    Icasa's Sim rules need a privacy backstop - Lloyd Matthew and Heinz Vollmer

    Icasa’s Sim rules need a privacy backstop

    5 November 2026
    AI's boardroom honeymoon is over - Gary Stocks

    AI’s boardroom honeymoon is over

    22 October 2026
    Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

    Before South Africa licenses Starlink, it should look at Ukraine

    21 October 2026

    Subscribe to Updates

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

    Latest Posts
    Court bid could open the door to Starlink without new law

    Court bid could open the door to Starlink in South Africa

    11 November 2026
    Telkom wants Icasa's BEE rules eased for everyone, Starlink included

    Telkom wants Icasa’s BEE rules eased for everyone, Starlink included

    11 November 2026
    TCS | Pick n Pay fights back in online grocery wars - Vince Viviers

    TCS | Pick n Pay fights back in online grocery wars

    11 November 2026
    Malatsi briefed as power outage hits the SABC

    Malatsi briefed as power outage hits the SABC

    11 November 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