Econet looks at mobile virtual network operator
An MVNO is an operator that does not have its own network but partners with an existing operator to piggyback on its network.
Although MVNOs are not allowed in South Africa, Virgin Mobile, Autopage and Nashua Mobile technically operate as MVNOs, despite being called service providers. Econet was investigating MVNO opportunities but had not decided whether it would enter that market, said chief executive Strive Masiyiwa.
Econet is a Zimbabwean company, which is based in South Africa. It operates cellphone networks in Zimbabwe, Burundi, Botswana, Lesotho, Kenya and also a satellite company in New Zealand. It is listed in Harare. In South Africa the company has a small business selling bandwidth to internet service providers.
Masiyiwa said Econet was a strong brand especially among foreigners living in South Africa who came from countries where Econet operated.
"We are watching closely and assessing the market [and] how other players are doing," he said. But Masiyiwa added that Econet’s decision to launch would not be based on whether other operators were successful or not.
South Africa has about 33 million active SIM cards. It is dominated by Vodacom with more than 21 million subscribers, followed by MTN with more than 11 million. Cell C has just over 2.4 million customers. Virgin Mobile, which operates as an MVNO in other countries, did not want to reveal its subscriber numbers in South Africa. But the group’s new chief executive, Peter Boyd, said the group scaled back on its targets. The group initially targeted 10 percent of the market share within three to five years.
Nashua Mobile had more than 530 000 subscribers at the end of March last year whereas Autopage had 700 000. Virgin Mobile is a 50-50 joint venture between South Africa’s small cellphone network operator, Cell C, and British-based Virgin Group.
Autopage and Nashua Mobile are owned by JSE-listed companies Allied Technologies and Reunert, respectively. Autopage and Nashua Mobile sell unbranded packages for the three network providers, Cell C, MTN and Vodacom.
Business Report
Loading ...