South Africa MNO - MVNO Market Size (2024 - 2029)

South Africa MNO - MVNO 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).

• Amid a digital transformation and a diversifying telecommunications landscape, mobile virtual network operators (MVNOs) are gaining prominence in South Africa. They are harnessing advanced technologies, venturing into new market segments, and delivering added value to consumers and traditional mobile network operators (MNOs). Recently, the South African MVNO market has seen a transition in its competitive landscape. The focus has moved away from mere pricing strategies to a more nuanced emphasis on value-added services and product distinctiveness. This shift is primarily a response to the dominance of MNOs in the affordable cellular services segment, spanning both developed and developing urban centers across South Africa.
• The expansion of the MVNO market in South Africa is driven by increased smartphone penetration and growing mobile internet usage, which have created a demand for affordable and flexible mobile services. MVNOs are capitalizing on this by offering cost-effective and tailored packages that attract price-sensitive consumers.
• Moreover, regulatory support from the Independent Communications Authority of South Africa (ICASA) has fostered a competitive environment. ICASA's efforts to promote competition and reduce barriers to entry have encouraged the proliferation of MVNOs. Also, partnerships with established mobile network operators (MNOs) enable MVNOs to leverage existing infrastructure without the high costs of building and maintaining networks. This allows them to focus on innovative service offerings and customer experience.
• The diverse population in South Africa provides an opportunity for MVNOs to target niche markets with customized solutions, such as services tailored for specific communities or businesses. The MVNO market in South Africa is experiencing robust growth fueled by technological enhancements and a shift toward digitalization. This shift has empowered MVNOs to introduce value-added services like mobile banking, IoT connectivity, and e-commerce platforms, bolstering their attractiveness for consumers and businesses. In essence, MVNOs are adapting to the changing needs of the South African telecommunications industry.
• The growth of the South African MVNO market is expected to be attributed to the entry of new players and the roll-out of new services. 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.
• In June 2024, MTN and Huawei signed a memorandum of understanding (MoU) for strategic cooperation on Net5.5G. Through this MoU, the two sides will jointly promote the large-scale application of key capabilities of Net5.5G, such as 400GE, SRv6, slicing, and Network Digital Map, to continuously improve MTN's service experience and network availability in the consumer and B2B fields and improve its O&M efficiency.
• However, the growth of the MVNO market in South Africa is restricted by high competition from established MNOs, limited network coverage in rural areas, and low consumer awareness. Additionally, the high cost of network leasing and operational challenges also impede market expansion.

South Africa MNO - MVNO Industry Segmentation

The MVNO South African market is being driven by increasing demand in a wide range of applications, like retail, cellular M2M, and media and entertainment. The scope of the study tracks the adoption of telecommunication services based on operational modes, such as reseller, service operator, and full MVNO. The study also focuses on the existing vendor landscape of mobile network operators and MVNO vendors, as well as their offerings.

The MVNO South African market is segmented by subscriber (enterprise and consumer). The market sizes and forecasts are provided in value terms (USD) for all the above segments.