Vodacom Signs Its First Mvno Customer

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vodacom signs its first mvno customer

The client, Mr Price Mobile, is the first MVNO to be supported on Vodacom's network, a spokeswoman for the telecommunications operator confirmed on Friday in an e-mailed response to questions from TechCentral.

She also confirmed that Vodacom has built an MVNE - or mobile virtual network enablement - platform to support the offering.

The move makes Vodacom the third mobile network operator in South Africa to support MVNOs after Cell C and MTN. Cell C pioneered the MVNO model in the local market and remains by far the largest host of MVNOs. Cell C CEO Jorge Mendes last week told the TechCentral Show that MVNOs are key to the company's turnaround plan .

News of Vodacom's launch comes as the MVNO market in South Africa expands, with a growing number of non-telecoms brands - including Shoprite, FNB and Capitec - offering products. MVNOs don't build network infrastructure of their own but rather provide own-branded voice and data services in partnership with a network operator. The model has proved popular in Europe, in particular, where MVNOs have put downward pressure on retail consumer prices and expanded consumer choice.

Asked whether the partnership with Mr Price Mobile means it is now compliant with communications regulator Icasa's requirement for successful bidders in the 2022 spectrum auction to host and provide support to MVNOs, Vodacom said: "The launch of Mr Price Mobile and the operational readiness of our MVNE platform, while being a major milestone for Vodacom's ability to run a sustainable MVNO business, isn't necessarily associated with the Icasa spectrum obligations.