South Africa MNO - MVNO Market Size

South Africa MVNO - MNO Market Analysis

The South Africa MNO - MVNO Market size is estimated at USD 84.33 million in 2024, and is expected to reach USD 122.76 million by 2029, growing at a CAGR of 7.80% during the forecast period (2024-2029).

In an increasingly digital world and fragmented telecommunications industry, MVNOs are on the rise, applying emerging technologies, exploring new verticals, and providing value to both consumers and existing mobile network operators (MNOs). In recent years, competition in the South African MNO - MVNO market has shifted from pricing to value-added services and product differentiation due to the prominence of MNOs in the low-cost cellular services market in developed and developing cities of South Africa.

• The growth of the South African MNO - MVNO market is expected to be attributed to the entry of new players and the roll-out of new services. Initially, the roll-out of 5G was delayed due to the government's reluctance to allocate the radio frequency spectrum required for the mass roll-out of 5G.
• The first licenses to mobile network operators (MNO) that will allow them to build large-scale 5G cell phone networks in South Africa were expected to be released during 2020. Presently, many trials are being conducted in the country with respect to the deployment of 5G technology, which may allow MVNOs to prosper in the country.
• However, most of the MNOs and MVNOs leverage the low-cost model to gain customers. This market has a low-profit margin because the vendors offer cheaper rates to consumers by renting spectrum from major carriers. MVNO players function as wholesalers that purchase bandwidth in chunks from big carrier networks and sell at a discount to consumers. This factor is expected to restrain the market's growth throughout the forecast period.
• To ensure business continuity due to the COVID-19 outbreak, business organizations, especially in highly affected states of South Africa, allowed their employees to work from home (WFH). The increase in the number of people working from home led to an increasing demand for downloading, online video viewing, and communication through video conferencing, thus leading to increased network traffic and data usage.
• Generally, customers cannot complete make a call when they are on zero credit balance. This applies to a significant number of the South African population at various times of the day or month. However, this number increased due to the COVID-19 crisis. In April 2020, Cell C Limited and Starlogik alliance launched "StarCALL," a free ping service for customers with zero credit balance. The solution aims to help millions of African customers to stay connected at the time of crisis.