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31 March 2025
Telkom announced the launch of a new platform designed for mobile virtual network operators (MVNOs). This initiative will allow MVNOs, which do not possess physical infrastructure, to utilize Telkom’s network to provide telecom services..jpg?lu=154)
This step aligns with the requirements set forth by the Independent Communications Authority of South Africa (ICASA) and positions Telkom to tap into a burgeoning market with significant revenue potential. A recent report by Africa Analysis, published in February 2024, estimates the MVNO market’s revenue potential at 83.6 billion rand.
Telkom highlighted the MVNO sector's impressive growth since its inception in 2006, noting a year-on-year subscriber increase of 51% by the end of 2023, which brought the total to approximately 4.3 million users. This growth has primarily been driven by consumer interest in services from financial providers, retail chains, and niche brands.
Telkom faces stiff competition from established players in the South African telecom market. Cell C was an early pioneer in the MVNO space, launching its platform in 2006 and holding a commanding 95% share of MVNO SIMs by 2023, as reported by Africa Analysis. Additionally, MTN and Vodacom have entered the MVNO market, with MTN launching its platform in 2020 and Vodacom following in 2024. Vodacom, which already leads the telephony market, indicated intentions in October 2024 to leverage the MVNO segment for future growth.
