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Cell C, FNB in MVNO talks?

Bonnie Tubbs
By Bonnie Tubbs, ITWeb telecoms editor.
Johannesburg, 19 Aug 2014
FNB already holds a telco licence, and offers voice and data services to its banking customers.
FNB already holds a telco licence, and offers voice and data services to its banking customers.

First National Bank (FNB) and Cell C are rumoured to be in talks that are likely to result in the big four bank launching a mobile virtual network operator (MVNO) in SA.

However, the two are tight-lipped, saying a formal announcement will only be made when - and if - new services launch.

Cell C, SA's third mobile operator and aspirant competitor to SA's mobile duopoly Vodacom and MTN, has already shown a propensity to offer its network for use by would-be MVNOs, where other networks have not.

The operator recently partnered with mobile virtual network enabler MVN-X , which positions itself as a launch pad for retailers and banks wanting to exploit SA's lucrative telecoms market and offer niche mobile services. Cell C is already the network partner for SA's first MVNO, Virgin Mobile SA.

FNB head of corporate communications, Virginia Magapatona, notes the bank has a telco licence and, as such, is already able to provide voice and data services - which it does through its telecoms arm, FNB Connect.

Magapatona says the bank will continue to enhance its services "where it benefits our customers, such as providing free calls and messaging via the FNB app". She says, because FNB is "one of the largest bulk SMS users and airtime distributors", it has relationships with all mobile network operators. "[FNB] will continue to work closely with all parties.

"We continue to hold confidential discussions with various operators, and we will only be in a position to formally announce any new features or customer benefits once launched."

Cell C declined to comment, saying it does not respond to industry speculation.

Sensible fit

ICT veteran Adrian Schofield says, if there is any truth to the speculation, "it certainly makes more sense than the move by Mr Price recently".

Last month, it emerged that the local retail giant had quietly gone live with an MVNO offering for its credit customers, through a partnership with MVN-X, which is run by former Virgin Mobile SA CEO Steve Bailey.

Schofield says FNB has clearly positioned itself as "the technology bank" and holding a telco licence enables it to move relatively easily into the MVNO market. "The move would increase their cross-selling opportunities and provide more lock-in to their client base."

Equally, he says, it makes sense from Cell C's perspective, as the operator will have a second trusted brand to add to its subscriber base, increasing its market share without the marketing expense to go with it.

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