Autopage Cellular, independent provider of cellular telephony services, intends to approach the Independent Communications Authority of South Africa (ICASA) about launching a mobile virtual network operator (MVNO) in this country.
MD Stephen Blewett told journalists yesterday that he would soon make verbal submissions to ICASA, formally requesting permission to introduce a countrywide MVNO.
"We feel that a good fourth or fifth network in this country would be an MVNO," Blewett said, adding that such a move would allow for greater competition and better service within the telecommunications sector.
Blewett also warned that the proposed entry of global player Virgin into the South African telecoms sector would create a "competitor of note", and said Autopage would "relish the idea" of adding an MVNO to its arsenal when the new entrant joins the local market.
An MVNO does not own a network or spectrum, but establishes relationships with traditional mobile network operators to buy wholesale "minutes of use" for resale to its customers. This, Blewett noted, would allow Autopage to offer customers its lower telecommunications costs by charging lower tariffs.
SA`s telecoms legislation prohibits the adjustment of tariffs, restricting network operators and independent service providers to manipulating subscription fees and offering various software tools that enable better management of cellular calls, he explained.
South African consumers, he said, are becoming increasingly concerned about the high cost of local telecommunications.
Driving choice
"Our role in this industry is to provide customers with choice. We have to look at driving down prices," Blewett said, adding that Autopage`s strength in terms of providing an MVNO stems from the fact that it is a low-cost company with adequate infrastructure. The implementation of an MVNO also does not require high capex or overheads.
"We have already gathered market intelligence and have come up with three tariff models that we would like to offer. There is a gap in the market, but right now we can`t do it," he said.
Blewett believes ICASA will most likely wait until the finalisation of the country`s Convergence Bill before considering the MVNO, which will most likely require a value-added network licence.
An MVNO model, he claimed, would not only benefit consumers, but also network operators, who could broaden their customer base at a zero cost of acquisition.
Botswana is considering an MVNO as a third mobile telecommunications operator, he noted.
Earlier this year, the Bokamoso Consortium, which was awarded the underserviced area licence for the Lejweleputswa region, signed an MVNO deal with Vodacom.
As part of the Department of Communications` drive to bridge the digital divide, several MVNO agreements are set to be concluded in underserviced rural areas, to offer tailored services to local customers. However, a countrywide MVNO model would require separate regulatory approval.
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