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Old Mutual Connect launches as a new MVNO on Cell C, enhancing mobile accessibility for South Africa's lower-income market. (Image source: Adobe Stock)

Old Mutual, a South African insurance giant, has introduced a Mobile Virtual Network Operator (MVNO) called Old Mutual Connect on Cell C's platform, coinciding with a surge in the MVNO sector

Clarence Nethengwe, the CEO designate of OM Bank, highlighted that this service is part of the company's Integrated Financial Services (IFS) strategy, aimed at offering tangible value-added services to its customers.

The new service aims to deliver competitive mobile options, targeting improved connectivity for the lower-income market. Nethengwe emphasised the importance of affordable data, stating, “Affordable data and reliable connectivity is critical for our customers in the mass market to fully participate in the mainstream economy. It is also an important enabler for our customers to interact with the rest of our propositions digitally.”

Operating on Cell C’s network, Old Mutual Connect will utilise a multi-operator core network agreement to ensure reliable, high-speed mobile services. This network benefits from existing partnerships with Vodacom and MTN, offering a broad coverage footprint.

Customers can obtain a SIM card for R5 (US$0.29) at any Old Mutual branch, with options to purchase data and airtime available through branches, partners, and digital channels.

In September 2024, Old Mutual announced plans to launch a bank by the first quarter of 2025, with regulatory approval from the Prudential Authority confirming the readiness of its systems. Clarence Nethengwe is set to take on the role of CEO-designate of the bank, effective November 1.

MVNO market growth

South Africa's MVNO market has seen substantial growth recently, with several new players entering over the past five years. MVNOs, which provide cellular services without owning network infrastructure, buy wholesale access from mobile network operators to serve their subscribers. By December 2023, the market had over 4.3 million MVNO SIMs, reflecting a 51% annual growth rate.

The market is projected to expand further, potentially reaching 10 million SIMs by December 2028. The anticipated entry of major retail brands could accelerate growth, possibly driving the total to 13.5 million SIMs. Old Mutual Connect joins other prominent operators like Capitec Connect, South Africa's largest MVNO with over one million active SIMs, and FNB Connect, which had 879,000 active SIMs in 2022 and aims to reach one million soon.

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