South Africa’s mobile virtual network operator market continues to expand, but the approach companies take to enter it has evolved.
Previously, launching an MVNO focused on disrupting telecoms by offering lower-cost calls and data without the expense of building infrastructure. Now, most new entrants do not aim to become telecom providers. Instead, they use mobile services to support their main businesses, strengthen customer ties, and open new income sources.
Banks, retailers, and insurers lead the change
Financial institutions combine connectivity with banking services to gain better customer insights and boost loyalty. Retailers provide free data as rewards, while insurers use mobile offerings to increase engagement and earn extra revenue. According to Africa Analysis, South Africa’s MVNO market is expected to grow from 4.4 million active SIMs in 2025 to 14.4 million by 2030.
Three of the country’s four largest banks already run MVNOs, and the fourth plans to follow. Retailers were early to see the strategic benefits of mobile services, and several major chains now have their own. With more organizations targeting the same customers, simply introducing another consumer-focused MVNO no longer stands out.
Related: Adenia Partners Buys Minet Group Stake
Success now requires serving a specific market with a clear value beyond connectivity. Lower prices alone are not enough—customers won’t switch for small savings, especially when changing networks takes effort.
This year’s MVNO Nation event in Cape Town reflected the shift. Attendance remained high, but the energy of past years had dimmed. The most obvious consumer opportunities are already taken, and discussions have moved on.
IoT and business connectivity fuel the next stage
While consumer MVNOs near saturation, growth will likely come from enterprise and Internet of Things solutions. South Africa’s IoT market is projected to grow from approximately $4.85 billion in 2026 to around $14.54 billion by 2030. Companies deploying connected devices like worker safety wearables, vehicle tracking, and smart meters need dependable mobile connections.
A vehicle tracking firm managing two million connected vehicles could support millions of active SIMs. Though IoT connections generate less revenue per SIM than consumer plans, they provide value through volume, long-term agreements, and steady usage.
Related: Liquid Technologies secures $660m in debt refinancing
Business clients rarely want connectivity alone. They seek integrated solutions that include device management, security, analytics, and operational oversight. This allows MVNOs to compete on expertise and added value rather than cost.
For those considering a new consumer MVNO, caution is advised. The era of launching a mobile brand and expecting instant customer interest is over. Building a lasting consumer MVNO has grown more difficult as competition increases.
The opportunity remains, but it has changed. The next successful MVNO will address connectivity needs for businesses operating at scale, where millions of devices create lasting value.
For now, growth depends on machines rather than individuals.
