Retailer Spar Group has launched an MVNO offering that includes 5G data services and will piggyback off MTN’s network infrastructure, according to a statement.
Customers can purchase Spar Mobile Sim cards at any Spar, Tops, Spar Express or SaveMor store, it said, and customers will get “free data” every time they shop, according to Blake Raubenheimer, the group’s omnichannel executive.
Each Spar Mobile Sim card comes pre-loaded with 300MB of data and R10 airtime that does not expire unless used. Customers can choose to get a new number or keep their current number by going through an in-store porting process.
MVNOs – or mobile virtual network operators – rely on traditional mobile operators for network infrastructure support, and Spar has chosen MTN South Africa as its network partner.
As the second fully fledged mobile operator to enter the MVNO market, MTN is giving market-leading Cell C a run for its money as it acquires new MVNO customers.
Some of MTN’s other MVNO clients include Pick n Pay’s PnP Mobile, AfriHost Air Mobile and Standard Bank Connect.
Relative latecomers Vodacom and Telkom recently launched MVNO enablement platforms of their own, adding even more competition in what is becoming a fiercely contested market.
Spar’s introduction of rewards in the form of data bundles based on in-store shopping is a typical strategy used by brands to encourage MVNO uptake on one hand and improve loyalty and the stickiness of its core offering on the other.
Competitive market
The most successful MVNOs in South Africa are those linked to the banking sector, where rewards in the form of airtime and data are linked to in-app transactions. These include the largest MVNO by customer numbers, Capitec Connect, Standard Bank Connect and FNB Connect. Capitec Connect and FNB Connect rely on Cell C for infrastructure support.
Pureplay MVNOs – those not linked to any existing brand – also compete for market share, but their ability to acquire customers is more difficult as they do not have a pre-existing customer base to leverage.
On the grocery retail front, Spar joins competitors Shoprite K’nect Mobile, PnP Mobile and Boxercom in launching an MVNO. Other retailers with MVNOs include TFG Mobile and Mr Price Mobile.
Read: Listed: all the MVNOs in South Africa – H2 2024 edition
“The Spar Mobile offering is anchored on simplicity, affordability and trustworthiness, giving us a chance to create one-of-a-kind deals for our customers – linking groceries and Tops products with free data,” said Raubenheimer in the statement. – © 2025 NewsCentral Media
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