Boasting 1.6 million subscribers after less than three years in the market, Capitec Connect has quickly become South Africa’s largest MVNO – and it has an ambitious plan for further growth.
Dalene Steyn, head of Capitec Connect, tells the TechCentral Show (TCS) that the MVNO – or mobile virtual network operator – market in South Africa is poised for further expansion as banks, retailers and other brands muscle into the mobile business through wholesale partnerships with network operators.
According to Steyn, although Capitec Connect is not a loss leader for the bank, the focus for now is building a critical mass of subscribers from Capitec Bank’s customer base – Capitec Connect users must be bank clients to sign up for the service.
In the interview, Steyn tells TechCentral editor Duncan McLeod about:
- Why Capitec Connect recently cut its prices, matching another MVNO, Afrihost AirMobile, as the cheapest MVNO provider in South Africa – spoiler: it’s all about building scale;
- Why Capitec is pulling ahead in the MVNO market and how big the bank wants to be in mobile – and why it’s so important to its business;
- Capitec Connect’s plans to introduce post-paid contracts later this year and how this aligns with its push into business banking services;
- The company’s plans for device financing;
- Its relationship with Cell C (whose network it uses to provide mobile services to its clients) and why it’s pleased with the arrangement; and
- The unconfirmed market talk that Capitec might buy a strategic equity stake in Cell C.
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