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
      Nedbank hires MTN's former tech chief as group CIO - Nikos Angelopoulos

      Nedbank hires MTN’s former tech chief as group CIO

      31 July 2026
      Eskom's diesel bill falls 86% as breakdowns hit eight-year low

      Eskom’s diesel bill falls 86% as breakdowns hit eight-year low

      31 July 2026
      Ramaphosa signs off on taking the grid away from Eskom

      Ramaphosa signs off on taking the grid away from Eskom

      31 July 2026
      Microsoft just had the biggest day in stock market history

      Microsoft just had the biggest day in stock market history

      31 July 2026
      MTN Nigeria's growth engine stalled in second quarter - Karl Toriola

      MTN Nigeria’s growth engine stalled in second quarter

      31 July 2026
    • World
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
      IBM shares crash 25% as AI upends software spending - Arvind Krishna

      IBM shares crash 25% as AI upends software spending

      15 July 2026
      Jony Ive's first OpenAI device: an AI smart speaker - Jony Ive and Sam Altman

      Jony Ive’s first OpenAI device: an AI smart speaker

      15 July 2026
      Stripe, Advent in talks to buy PayPal for $53-billion

      Stripe, Advent in talks to buy PayPal for $53-billion

      15 July 2026
      Memory crisis sends smartphone market into steep decline

      Memory crisis sends smartphone market into steep decline

      13 July 2026
    • In-depth
      The plan to stop AI from breaking the world - Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
    • TCS
      TCS+ | Why South African workers must become supervisors of digital labour - Accelera Digital Group Cliff de Wit

      TCS+ | Why South African workers must become supervisors of digital labour

      31 July 2026
      TCS | Rapid deployment rules can't work without municipalities: ACT - Nomvuyiso Batyi

      TCS | Icasa’s rules skip the real bottleneck: ACT

      30 July 2026
      TCS+ | iStore Business on why Apple makes sense for SMEs - Sudesh Pillay and Tamia Nontsikelelo

      TCS+ | iStore Business on why Apple makes sense for SMEs

      30 July 2026
      TCS+ | A smarter approach to cloud for South African businesses - Joel Chacko and Jonathan Oaker

      TCS+ | A smarter approach to cloud for South African businesses

      28 July 2026
      TCS | How Optasia lends billions to people banks can't see - Salvador Anglada

      TCS | How Optasia lends billions to people banks can’t see

      23 July 2026
    • Opinion
      The author, Jannie van Zyl

      Selling vapour is corporate suicide in slow motion

      16 July 2026
      Brazil's online gambling crackdown is a lesson for South Africa

      How Amazon outmanoeuvred Starlink in South Africa

      15 July 2026
      The Popia problem with agentic AI - Herman Haasbroek

      The Popia problem with agentic AI

      14 July 2026
      The author, Fanie van Rooyen

      South Africa can still catch the AI wave – here’s how

      7 July 2026
      The author, Fanie van Rooyen

      The AI utopia South Africa can’t afford

      1 July 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM Telecom
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • 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
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • 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
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    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
    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

    MTN Nigeria's growth engine stalled in second quarter - Karl Toriola

    MTN Nigeria’s growth engine stalled in second quarter

    31 July 2026
    The retailer that is about to become your bank

    The retailer that is about to become your bank

    30 July 2026
    TCS | Rapid deployment rules can't work without municipalities: ACT - Nomvuyiso Batyi

    TCS | Icasa’s rules skip the real bottleneck: ACT

    30 July 2026
    Company News
    Domains.co.za launches self-hosted n8n VPS hosting

    Domains.co.za launches self-hosted n8n VPS hosting

    31 July 2026
    Smarter.tech '26 shows why smarter technology begins with context - Obsidian Systems

    Context is the missing piece in enterprise AI: Obsidian

    31 July 2026
    Huawei launches 12 intelligent transport solutions in South Africa - Sam Tang

    Huawei launches 12 intelligent transport solutions in South Africa

    30 July 2026
    Opinion
    The author, Jannie van Zyl

    Selling vapour is corporate suicide in slow motion

    16 July 2026
    Brazil's online gambling crackdown is a lesson for South Africa

    How Amazon outmanoeuvred Starlink in South Africa

    15 July 2026
    The Popia problem with agentic AI - Herman Haasbroek

    The Popia problem with agentic AI

    14 July 2026

    Subscribe to Updates

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

    Latest Posts
    Nedbank hires MTN's former tech chief as group CIO - Nikos Angelopoulos

    Nedbank hires MTN’s former tech chief as group CIO

    31 July 2026
    Eskom's diesel bill falls 86% as breakdowns hit eight-year low

    Eskom’s diesel bill falls 86% as breakdowns hit eight-year low

    31 July 2026
    Ramaphosa signs off on taking the grid away from Eskom

    Ramaphosa signs off on taking the grid away from Eskom

    31 July 2026
    TCS+ | Why South African workers must become supervisors of digital labour - Accelera Digital Group Cliff de Wit

    TCS+ | Why South African workers must become supervisors of digital labour

    31 July 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • 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}