South Africa: Melon Mobile joins the telecom market as a mobile virtual network operator
April 12th 2023
The South African telecom regulator has forced all telecom operators to open their networks to MVNOs. This should facilitate the entry of this type of operator into the growing telecom market.
The South African telecoms market is enriched by a new player. Melon Mobile, a mobile virtual network operator (MVNO) is set to officially launch its business operations on Thursday, April 13, according to Calvin Collett, founder and CEO of the company. A beta version of the services is currently available to a few users.
Like all virtual mobile network operators, Melon Mobile does not own physical network infrastructures. The company relies on the network of mobile network operator MTN to provide its services.
“ What we’ve done differently is focus on a purely digital journey. Most support, like auto-RICA, is done online. There is no physical paperwork or anything like that. We tried to digitize the entire course ,” Mr. Collett explained.
The launch of Melon Mobile comes in a context where the Independent Communications Authority of South Africa (ICASA) wants to facilitate the entry of MVNOs into the South African telecom market in order to respond more effectively to the growing and increasingly more diverse consumers. The regulator has included the launch of a Mobile Virtual Network Enablement (MVNE) platform as a license requirement for telecom spectrum acquired in March 2022 by telecom operators.
Recall that Cell C was for a long time the only mobile network operator that leased its network to mobile virtual network operators in South Africa. MTN and Telkom joined in 2020 and 2023, respectively. Vodacom announced last November that it had taken steps to accommodate MVNOs on its network.
Melon Mobile prides itself on being a completely digital MVNO. The company wants to bet on an innovative offer to make a place for itself in the national telecom market. The company is aiming for a market share of 0.5% to 1% over the next five years.
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