Major South African bank in fibre talks

Banking mobile virtual network operator (MVNO) FNB Connect wants to expand its telecoms service offerings and boost the rollout of fibre infrastructure to support its clients further, Sunday Times reports.

While the MVNO already offers a limited fixed-wireless home connectivity solution, the company has been in discussions with various fibre infrastructure providers about expanding the offering.

“We provide fixed wireless access, a home solution. It is very limited at present, and it’s one of the things we’re considering expanding,” the Sunday Times quoted FNB Connect CEO Sashin Sookroo as saying.

“There’s a need for fibre access, and the market resonates with our fixed wireless services. That is definitely the focus area.”

Fixed wireless services rely on cellular, Wi-Fi, or other wireless technologies to provide last-mile connectivity to users.

In the case of fixed 4G and 5G services, cellular towers are connected to fibre networks to provide the necessary bandwidth. Therefore, expanding fibre infrastructure will help expand coverage and improve customer experience.

FNB Connect’s mobile virtual network operator launched in 2015, offering customers a range of discounts on cellular services, including free WhatsApp messaging.

Potential subscribers must be 18 or older and hold a transactional account with FNB to be eligible to buy the operator’s products.

It initially roamed exclusively on Cell C’s network. However, in June 2023, the MVNO announced that it had partnered with MTN to also use its network infrastructure.

“We are pleased to join forces with MTN to deliver even greater value to all our customers,” said then-FNB CEO Jacques Celliers.

“This collaboration is consistent with our efforts to leverage reliable network infrastructure in the market to accelerate our delivery of cost-effective data and voice plans and other ICT services.”

FNB Connect is the first banking MVNO in the country to offer eSIM support. The company announced the launch in mid-November 2024.

The bank said its eSIM support will reduce the time from sign-up to activation to less than three minutes.

Sookroo said the bank had observed a 169% increase in the number of customers with eSIM-enabled smartphones over the past three years.

“We expect these numbers to grow further as eSIM-enabled devices become more readily available across more devices with more affordable price points,” he added.

Sookroo also said the technology would simplify the process of customers porting their numbers to FNB Connect.

“Because an eSIM is a digital chip embedded into one’s device, it means that each customer can connect to multiple mobile networks without the hassle of needing to physically swap their SIM card,” he added.

The MVNO is preparing to launch several eSIM-based services.

To mark the launch of eSIM support, FNB Connect is giving qualifying customers an extra 100GB of free data per month for six months.

To qualify, customers must sign up for a new FNB Connect SIM plan with an eSIM.

The MVNO is approaching one million active SIMs on its network. In September 2024, FirstRand’s investor presentation for the year ending June 2024 revealed there were 958,000 active FNB Connect SIMs.

It also revealed that the MVNO generated R18.6 billion in revenue last year, including airtime, data, Lotto, and electricity sales.

With 958,000 active SIMS, FNB Connect is one of the largest MVNOs in the country. It also revealed a surge in data use on its network, with 12 million gigabytes consumed during the financial year, 31% more than what was consumed the year prior.