When you hear the term MVNO, you might picture a small startup renting capacity from a big carrier. In South Africa, however, the story is flipping. Telkom, the country’s second‑largest fixed‑line and mobile operator, decided to become an MVNO host in March 2025. The catalyst? A rule from the Independent Communications Authority of South Africa (ICASA) that says any mobile licence holder must support at least three Black‑owned MVNOs. By partnering with an unnamed mobile‑virtual‑network‑enabler (MVNE), Telkom can satisfy that requirement without building a whole new ecosystem from scratch.
Beyond compliance, there’s a strategic angle. Telkom’s traditional revenue streams—voice, broadband and enterprise services—are under pressure from over‑the‑top apps and price‑sensitive consumers. Offering an Telkom MVNO platform lets the company tap into brand‑centric mobile services that command higher margins. Brands get to design their own plans, loyalty perks and data bundles while Telkom supplies the underlying network, roaming agreements and customer‑care infrastructure.
The partnership model also reduces risk for Telkom. Instead of hunting for the right technology partner over months, the MVNE brings a ready‑made, end‑to‑end suite that handles everything from product design to billing. That means Telkom can start onboarding brands within weeks, adapt to each partner’s tech preferences, and keep its own network utilization high.
For the brands eyeing the telco space, the proposition is equally attractive. Banks, insurance firms and retailers are already experimenting with branded phones and data‑driven loyalty schemes. With Telkom’s backing, they gain access to a high‑quality South African network and a team that can tailor the customer journey—from sign‑up to support—exactly to their needs.
The MVNO sector in South Africa isn’t just a niche hobby; it’s a fast‑growing industry. According to the Africa Analysis MVNO Report (Feb 2024), potential revenue sits around ZAR 83.6 million (about US $4.6 million). Since the first MVNO launched in 2006, subscriber numbers have surged, climbing 51 % year‑on‑year to hit 4.3 million by the end of 2023.
Analysts at BMIT project that the subscriber base could more than double by 2029, reaching between 11 and 12 million users. That translates to an 18 % compound annual growth rate—a pace that outstrips many traditional telecom segments. The drivers are clear: banks want to embed mobile services into their apps, insurers see data‑driven risk models as a new revenue source, and retailers aim to lock customers into loyalty ecosystems that include phone plans.
Existing players have already carved out distinct niches. FNB Connect, for example, bundles banking benefits with data, while Capitec Connect leverages its massive retail banking footprint to push affordable data bundles to price‑sensitive customers. Retail‑oriented MVNOs like PnP Mobile and TFG Connect use their store networks to sell phones and plans side‑by‑side with apparel. Meanwhile, niche operators such as Boxercom and Sakeng Mobile focus on specific community or linguistic groups, offering localized content and support.Telkom’s entry adds a heavyweight to this mix. Its network covers most of the country, and its roaming agreements open doors for South African travelers abroad. By opening its platform to any brand willing to craft a unique mobile proposition, Telkom could accelerate the diversification of services on offer. Imagine a supermarket chain launching a “grocery‑plus” data plan that rewards customers with extra gigabytes when they spend a certain amount each month. Or an insurance firm offering a data‑driven health monitoring package that feeds directly into its underwriting models.
Flexibility is the buzzword in Telkom’s outreach. The company says it can tailor onboarding to each partner’s technology stack—whether the brand prefers a cloud‑native API, an on‑premise solution or a hybrid model. Product design assistance means partners don’t have to start from a blank slate; they can lean on Telkom’s expertise in pricing, tiering and regulatory compliance. Customer experience teams will map out specific journeys, ensuring that support tickets, plan changes and bill enquiries feel seamless for the end‑user.
All of this happens against a backdrop of fierce competition for spectrum and network quality. South Africa’s mobile market remains dominated by a few large operators, and the government’s push for Black ownership is reshaping the competitive terrain. By meeting ICASA’s Black‑owned MVNO mandate early, Telkom avoids potential penalties and positions itself as a cooperative player in the country’s broader digital transformation agenda.
What does this mean for the average South African consumer? More choice, for one. Brands can now bundle mobile services with products you already buy—think a data deal that comes with a discount on your monthly grocery bill. It could also drive down prices as competition intensifies. On the flip side, the market could become crowded, making it harder for smaller MVNOs to stand out without a strong brand backing.
The next few months will be a litmus test. Telkom has announced it is actively scouting partners, and early adopters will likely be the banks and retailers already eyeing digital expansion. Watch for announcements of new branded plans, pilot programs and perhaps even joint marketing campaigns that blend telecom with everyday retail experiences. If the growth forecasts hold, South Africa could become a showcase for how MVNOs reshape traditional telecom markets—not just locally, but as a model for other emerging economies.