The mobile virtual network operator (MVNO) market is South Africa is getting crowded, yet a new player in the space believes that by making it easier for businesses to launch them, there’s still room for significant growth.
Huge NXTGN – pronounced “next gen” – has built a platform it calls a “digital VNE”, based in part on parent Huge Group’s acquisition of key assets of now-defunct MVNO Virgin Mobile South Africa, to make it simpler for businesses to launch these virtual networks.
An MVNO is a business that offers telecommunications services (usually mobile) to its clients by piggybacking on the infrastructure of a mobile network operator. In South Africa, the two main players in this space are Cell C, the market leader, and MTN. Vodacom and Telkom are also in the process of building platforms to support MVNOs but are late to the party.
Now Huge NXTGN has built a platform that it says will make it much easier to onboard new MVNOs, a move it thinks will lead to many more players entering the space. Already Huge NXTGN is working with Pick n Pay to build a new platform for its MVNO offering.
“Over the years, with our experience in the mobile network operator space, we have come up with what we consider the easiest route to market for most potential MVNOs and MVNEs (MVNO enablement firms). We have dropped the barriers to entry and can onboard a multitude of MVNOs without limiting their access and capabilities,” said Huge NXTGN CEO Jason Harmsen in an interview with TechCentral.
Moving parts
“The MVNO space is obviously a risky one; a large number of them don’t succeed. There are a lot of moving parts. Every MVNO has different requirements, different nuances,” Harmsen said. “We have come up with a model where we have dropped barriers to entry.”
Harmsen said Huge NXTGN provides prospective MVNOs with a “seamless entry into the space without significant spend, allowing them to test the waters” using a turnkey approach.
“The typical MVNO agreement requires you to sign all sorts of things. We allow anyone with a concept and a target market to begin exploring [what’s possible],” he said. The company said it will work with large enterprises and small companies interested in offering mobile services to their customers.
Read: Why Capitec launched an MVNO – and what comes next
However, unlike other MVNE players, which offer only mobile services, Harmsen said Huge NXTGN also offers SD-WAN (software-defined wide-area networking), PBX, cybersecurity and financial services as “ancillary services”.
The company is network agnostic, meaning it will work with any of the mobile network operators that open their networks to MVNOs. Its primary engagement for now, though, is with MTN South Africa.
“We are also engaged with Cell C, while Vodacom and Telkom are also in the space but not as prevalent. Telkom will be a new entrant soon and Vodacom has an MVNO strategy but is not as aggressive as MTN.”
Read: Afrihost AirMobile wins in MVNO data pricing showdown
Harmsen said that apart from Pick n Pay, Huge NXTGN is working with other “household brands”, including another retailer, with commercial launches “imminent”. Because of its focus on lowering the barriers to entry, the company is also working with clients to launch smaller MVNO offerings.
“The winner here will be the consumer, who will have a multitude of options.” — © 2025 NewsCentral Media
Get breaking news from TechCentral on WhatsApp. Sign up here.
