Vodacom’s MVNO Venture: A Recipe for Disaster?
In a move that is being hailed as a masterstroke by some and a recipe for disaster by others, Vodacom has launched its mobile virtual network enabler (MVNE) platform, marking the latest entrant in South Africa’s increasingly crowded MVNO market. The big question on everyone’s lips is: can Vodacom’s MVNE compete with the likes of Cell C, MTN, and Telkom?
To answer this question, one needs to look no further than the recent struggles faced by Cell C, the largest provider of MVNE services in SA. Despite its dominance, Cell C has been struggling to retain customers and maintain market share, with many experts citing the lack of a compelling value proposition as the key factor.
So, can Vodacom avoid the same pitfalls and emerge as a successful MVNE player? The answer is far from clear-cut. According to Arthur Goldstuck, CEO of World Wide Worx, Vodacom’s primary challenge will be determining how extensively it supports the MVNO model. This includes making decisions around wholesale pricing, network access, and service quality for hosted MVNOs.
But what about the competition? Can Vodacom’s MVNE really compete with the likes of Cell C, MTN, and Telkom? The answer is a resounding no. Cell C has refined its MVNO model and made it a market leader, despite being the smallest mobile operator in SA. MTN and Telkom have also invested heavily in their MVNE platforms, with MTN launching a fully-fledged MVNE platform in 2020.
So, what does this mean for Vodacom? Unfortunately, it means that the operator will struggle to gain traction in the MVNO market, despite its efforts to position itself as a major player. The reason for this is simple: Vodacom’s MVNE platform is simply too late to the party, and the operator has not done enough to differentiate itself from the competition.
In conclusion, Vodacom’s MVNE venture is a recipe for disaster, and the operator would do well to focus on other areas of its business to drive growth and profitability. The MVNO market is a crowded and competitive space, and Vodacom’s late entry means it will struggle to gain significant market share.
