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
      Vuyani Jarana: Mobile coverage masks a deeper broadband failure

      Vuyani Jarana: Mobile coverage masks a deeper broadband failure

      30 January 2026
      SABC Plus to flight Microsoft AI training videos

      SABC Plus to flight Microsoft AI training videos

      30 January 2026
      Fibre ducts

      Fibre industry consolidation in KZN

      30 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels S1E3: ‘BYD’s Corolla Cross challenger’

      30 January 2026
      What ordinary South Africans really think of AI

      What ordinary South Africans really think of AI

      30 January 2026
    • World
      Apple acquires audio AI start-up Q.ai

      Apple acquires audio AI start-up Q.ai

      30 January 2026
      SpaceX IPO may be largest in history

      SpaceX IPO may be largest in history

      28 January 2026
      Nvidia throws AI at the weather

      Nvidia throws AI at weather forecasting

      27 January 2026
      Debate erupts over value of in-flight Wi-Fi

      Debate erupts over value of in-flight Wi-Fi

      26 January 2026
      Intel takes another hit - Intel CEO Lip-Bu Tan. Laure Andrillon/Reuters

      Intel takes another hit

      23 January 2026
    • In-depth
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
      TechCentral's South African Newsmakers of 2025

      TechCentral’s South African Newsmakers of 2025

      18 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
    • TCS
      TCS+ | How Cloud On Demand is helping SA businesses succeed in the cloud - Xhenia Rhode, Dion Kalicharan

      TCS+ | Cloud On Demand and Consnet: inside a real-world AWS partner success story

      30 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels S1E2: ‘China attacks, BMW digs in, Toyota’s sublime supercar’

      23 January 2026

      TCS+ | Why cybersecurity is becoming a competitive advantage for SA businesses

      20 January 2026
      Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

      Watts & Wheels: S1E1 – ‘William, Prince of Wheels’

      8 January 2026
      TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

      TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

      12 December 2025
    • Opinion
      South Africa's skills advantage is being overlooked at home - Richard Firth

      South Africa’s skills advantage is being overlooked at home

      29 January 2026
      Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

      Why Elon Musk’s Starlink is a ‘hard no’ for me

      26 January 2026
      South Africa's new fibre broadband battle - Duncan McLeod

      South Africa’s new fibre broadband battle

      20 January 2026
      AI moves from pilots to production in South African companies - Nazia Pillay SAP

      AI moves from pilots to production in South African companies

      20 January 2026
      South Africa's new fibre broadband battle - Duncan McLeod

      ANC’s attack on Solly Malatsi shows how BEE dogma trumps economic reality

      14 December 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • 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
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Opinion » Duncan McLeod » Why your bank may soon be your telco

    Why your bank may soon be your telco

    By Duncan McLeod26 April 2015
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Duncan-McLeod-180-profileSouth Africa has not been particularly keen on the mobile virtual network operator (MVNO) model. It’s lagged most developed and some developing markets in launching mobile brands on the back of cellular operators’ infrastructure.

    South African retailers and banks — the two industries internationally that most tend to launch mobile products that leverage their strong consumer brands — have not jumped on the bandwagon in the same way as their peers in the US, Europe and Asia have.

    There are a number of reasons for this — and a few signs that the situation may finally be changing.

    One reason the market has been slow to open up is that MTN and Vodacom, South Africa’s two largest mobile operators — with 90% revenue market share between them — have not been particularly enamoured of the idea of MVNOs, which typically want to attract customers on the basis of low prices.

    Another is that until very recently, the South African mobile market was still growing strongly. Until a few short years ago, the main focus of the operators was not so much on stealing market share from one another, but racing to sign up the millions of South Africans who hadn’t yet been connected. But the market is now fast maturing.

    Yet to date only one operator — Cell C — has shown interest in hosting MVNOs on its network. In fact, it helped launch the country’s first such brand, Virgin Mobile, in 2006 in partnership with Richard Branson’s Virgin Group. It is no longer involved in that business, but the operator continues to court those interested in launching virtual mobile services.

    French telecommmunications giant Orange showed some interest in launching an MVNO here a couple of years ago. But it argued that without regulatory frameworks of the sort that European regulators have imposed on Europe network operators, it doesn’t make sense to invest. And communications regulator Icasa has shown no particular interest in developing those regulations.

    Indeed, it took eight years from Virgin Mobile’s 2006 launch before a second MVNO emerged.

    In 2014, JSE-listed retail group Mr Price revealed plans to launch MRP Mobile. That business was started with the help of former Virgin Mobile boss Steve Bailey, who now runs mobile virtual network enabler MVN-X, a subsidiary of Durban-based Ignition Group. Like Virgin Mobile, MRP Mobile runs on Cell C’s network. MVN-X provides the billing and customer relationship management infrastructure.

    Then, late last year, MVN-X announced that Cape Town-based Smart Mobile, which specialises in providing cellular services and handsets to the emerging post-paid market, will also launch an MVNO (again, using Cell C).

    And the company’s latest partnership, announced this week, is an MVNO called me&you mobile, to be launched in early May by Ignition Group.

    Me&you CEO Brett Howell says the business will be a niche player, offering a Sim-only solution with no contractual lock-in and competitive voice and data prices. The company hopes to attract those in higher living standards measures who no longer want to be locked into a 24-month contract but who still want some of the flexibility that contracts offer.

    FNB is soon expected to muscle into the mobile market with an MVNO of its own
    FNB is soon expected to muscle into the mobile market with an MVNO of its own

    Me&you mobile will operate online only, helping keeping costs low. Customers will order their services via its website, and the Sim will be couriered to them.

    The company plans to work with partners who sell handsets, but Howell emphasises me&you has no intention of doing this itself.

    The model makes sense, especially if one calculates how much it really costs to get a subsidised phone from one of the big mobile network operators on a 24-month contract.

    But the launch of these new and fairly niche players may just be the precursor to the launch of the big daddy of MVNOs.

    First National Bank is widely rumoured to be on the verge of launching a mobile brand of its own, with Cell C again providing the underpinnings, that will give MTN and Vodacom a serious run for their money.

    Details are sketchy, but talk is that FNB’s mobile service will be tightly integrated with its hugely successful eBucks rewards programme.

    And if FNB enters the market, the other big banks surely won’t be far behind.

    • Duncan McLeod is TechCentral editor. Find him on Twitter
    • This column was first published in the Sunday Times


    Brett Howell Cell C Duncan McLeod Icasa Ignition Group me&you me&you mobile Mr Price MRP Mobile MTN MVN-X Orange Richard Branson Smart Mobile Steve Bailey Virgin Group Virgin Mobile Vodacom
    WhatsApp YouTube Follow on Google News Add as preferred source on Google
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticlePost Office bank accounts remain frozen
    Next Article Eskom’s maintenance weekend a success

    Related Posts

    Watts & Wheels S1E3: 'BYD's Corolla Cross challenger'

    Watts & Wheels S1E3: ‘BYD’s Corolla Cross challenger’

    30 January 2026
    Starlink hype vs reality in South Africa

    Starlink hype vs reality in South Africa

    26 January 2026
    Mobile operators face tougher rules on data and billing

    Mobile operators face tougher rules on data and billing

    26 January 2026
    Company News
    Huawei turns 25 in South Africa, celebrates with major device discounts

    Huawei turns 25 in South Africa, celebrates with major device discounts

    30 January 2026
    Phishing has not disappeared, but it has grown up - KnowBe4

    Phishing has not disappeared, but it has grown up

    30 January 2026
    Smartphone affordability: South Africa's new economic divide - PayJoy

    Smartphone affordability: South Africa’s new economic divide

    29 January 2026
    Opinion
    South Africa's skills advantage is being overlooked at home - Richard Firth

    South Africa’s skills advantage is being overlooked at home

    29 January 2026
    Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

    Why Elon Musk’s Starlink is a ‘hard no’ for me

    26 January 2026
    South Africa's new fibre broadband battle - Duncan McLeod

    South Africa’s new fibre broadband battle

    20 January 2026

    Subscribe to Updates

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

    Latest Posts
    Vuyani Jarana: Mobile coverage masks a deeper broadband failure

    Vuyani Jarana: Mobile coverage masks a deeper broadband failure

    30 January 2026
    TCS+ | How Cloud On Demand is helping SA businesses succeed in the cloud - Xhenia Rhode, Dion Kalicharan

    TCS+ | Cloud On Demand and Consnet: inside a real-world AWS partner success story

    30 January 2026
    Huawei turns 25 in South Africa, celebrates with major device discounts

    Huawei turns 25 in South Africa, celebrates with major device discounts

    30 January 2026
    SABC Plus to flight Microsoft AI training videos

    SABC Plus to flight Microsoft AI training videos

    30 January 2026
    © 2009 - 2026 NewsCentral Media
    • 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}