Cell C’s leading market position as a platform for mobile virtual network operators (MVNOs) in South Africa is producing strong growth for the company.
In its interim results for the six months to 30 November 2025 – the first since it listed on the JSE on 27 November – Cell C reported that revenue from its wholesale business, which houses it MVNO operations, grew 23% year on year to R840-million, far outpacing its own consumer-facing businesses.
Comparatively, the company’s prepaid segment grew revenue by a much more modest 1.6%, to R2.7-billion, while post-paid inched up by 2.3% to R1.2-billion.
“Wholesale delivered continued strong growth, with revenue increasing by 22.5%, underpinned by sustained momentum in our MVNO business,” said Cell C CEO Jorge Mendes in commentary alongside the results.
“Supporting MVNO and wholesale partners remains a deliberate strategic priority for Cell C and a key long‑term growth lever, allowing us to scale through partner ecosystems while stimulating greater competition and customer choice in the South African market.”
According to Mendes, Cell C’s MVNO partners have more than five million subscribers. Some of the most prominent ones on the Cell C network are FNB Connect, Shoprite Group’s Knect Mobile and Capitec Connect. Capitec Connect has over two million subscribers on its own.
‘Healthier spread of competition’
Cell C’s supremacy in the MVNO market is, however, being challenged by rivals, especially MTN, which now hosts the second largest number of MVNOs in South Africa. Vodacom has only announced the inclusion of one MVNO, Mr Price Mobile, on its network, while Telkom is yet to announce any.
The competition for retail customers between mobile operators and MVNOs hosted on their networks can be a source of tension that can restrict MVNO uptake.
In a media call following the release of Cell C’s results, Mendes said this competition has not only been good internally to “keep Cell C on its toes”, but has had a positive overall effect on the market by forcing prices down and creating a “much healthier spread of competition across the market”.
In some instances, MVNOs can target niche market segments and service them in ways that traditional mobile operators do not, leading to a net positive for the MVNOs and their host operators. Mendes explained that where competition does exist, the marketing and distribution costs taken on by the MVNOs typically offset the margins lost when operators do not have direct access to retail customers.
“If you look at our partners, they have physical branches, digital capability and large customer bases, and are high-utility businesses. The contribution margin, whether it’s prepaid or MVNO, is largely the same. So, one would argue that that’s a very healthy position,” said Mendes.
Cell C capital spending in the six-month reporting period came to R895-million, R329-million of which was IT-related costs, including upgrades to its MVNO platform. As part of its strategy, Cell C aims to modernise its platform while maintaining an asset-light network architecture, which relies on roaming agreements with Vodacom and MTN in lieu of managing its own masts and towers.
Read: Cell C cleans up its balance sheet but faces tough trading reality
“Our platform strategy remains central to our growth. Expanding beyond traditional connectivity into wholesale, MVNOs and adjacent opportunities is building diversified, scalable revenue streams. At the same time, stronger network performance and an enhanced customer experience are accelerating momentum across segments,” said Mendes. – © 2026 NewsCentral Media
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