As mobile virtual network enabler (MVNE) platforms continue to proliferate in South Africa, JSE-listed Huge Group is carving out a larger slice of the market by bringing more retailers onto its infrastructure.
This is according to Jason Harmsen, MD of Huge NXTGN – a subsidiary of Huge Group – who shared insights in an e-mail interview with ITWeb, following the relaunch of Pick n Pay’s mobile virtual network operator (MVNO), Pick n Pay Mobile.
The retailer has refreshed its mobile offering with the launch of a new app, introducing features such as instant eSIM activation and self-RICA functionality that allows customers to sign up within minutes.
Huge NXTGN serves as Pick n Pay’s turnkey enablement partner. “We’re responsible for all the technical and operational building blocks that power the MVNO, from behind-the-scenes infrastructure, through to real-time insights that help shape the commercial strategy,” says Harmsen.
“What makes this relationship different is the model – it’s not just about providing technology. It’s about partnering with Pick n Pay to build something truly customer-centric, a mobile proposition that fits seamlessly into their broader business and loyalty ecosystem. We bring the platform, the tools and the support – they bring the brand and the customer base.”
Huge NXTGN was born out of Huge Group’s acquisition of the now-defunct Virgin Mobile South Africa – the continent’s first MVNO – nearly two decades ago. The new venture officially launched in the last quarter of 2024.
Fast-growing niche
The MVNE segment in South Africa is experiencing significant momentum. Cell C initially pioneered the space by opening its network to MVNOs, and has since become the preferred partner for brands such as Capitec Connect, FNB Connect, Mr Price Mobile and Shoprite’s K’Nect Mobile.
Other major operators – including Vodacom, MTN and Telkom – have more recently entered the MVNE race, partly spurred by regulatory obligations to support MVNO hosting.
A recent BMIT report forecasts that the local MVNO sector will continue to grow faster than traditional mobile operators. It projects an increase from around 4.8 million active subscribers in 2024, to between 11 million and 12 million by 2029. This equates to a compound annual growth rate of 18%.
Harmsen confirmed that Huge NXTGN also powers Boxercom, the mobile offering from national retailer Boxer.
“Beyond that, we’re working with three more consumer brands who are on track to launch their services later this year. What’s even more exciting is the traction we’re seeing with our micro MVNO model, a plug-and-play approach that strips out the traditional barriers to entry.”
He explains that the model allows smaller brands and SMMEs to launch connectivity offerings without large budgets, long lead times, or complicated infrastructure.
“It’s all part of our vision to democratise access to mobile innovation, creating a space where more players can participate, build and grow.”
According to Harmsen, Huge NXTGN operates a network-agnostic platform. “That means we can support our clients regardless of which network they choose to work with.
“We are currently fully integrated with MTN and are in the process of integrating with a second major operator to expand our footprint. That flexibility is key – it ensures we can scale our platform across a range of network infrastructures and commercial models, always keeping client needs front and centre.”
On the broader drivers of MVNO growth in South Africa, he notes the pandemic accelerated mobile-first behaviour.
He adds that people increasingly want to manage services from their phones, coupled with surging data usage and app adoption. “Customers are increasingly price-sensitive and looking for tailored and cost-effective solutions.
“MVNOs address this by enabling brands to embed connectivity into their core offerings, not as an add-on, but as an integrated value proposition. With the right wholesale agreements, these brands can offer real savings and greater personalisation, which improves customer relationships and unlocks new loyalty pathways.”
Digital-first demands
Meanwhile, Pick n Pay says the relaunch of its MVNO – which initially debuted in 2020 via MTN – aims to give customers greater control and flexibility over their mobile services.
The updated app allows for rapid eSIM activation, creation of customised plans, and management of voice, data and SMS allocations directly from a smartphone.
Plans are valid for 30 days and auto-renew unless cancelled, giving users full control over their spend without long-term commitments or hidden costs.
In a mobile environment where consumers demand digital-first solutions and increased value, Pick n Pay says its mobile service is evolving in line with expectations, offering enhanced rewards and features.
“Customers want easy-to-use and flexible mobile plans that work for them. The new app has been designed to provide an experience that puts convenience, control and value in the customer’s hands,” says Deven Moodley, executive head of value-added services, financial services and mobile at Pick n Pay.
“With the new eSIM capability, users can sign up on the go; there is no need for an additional SIM to receive the benefits that Pick n Pay Mobile offers. The ‘Build Your Own Plan’ feature is for those who want to manage their own mobile spend with a prepaid SIM, without the traditional inconvenience of having to do so in person at the till point every month. The bundles have also been supersized to give more data, more airtime, more voice, at more affordable prices.”
Customers can also top up data or airtime, monitor usage and adjust plans without visiting a store. For those who prefer a physical SIM, these remain available in Pick n Pay outlets.
The latest update introduces a new loyalty tier: users who remain active for six consecutive months receive 5% back on their mobile spend, increasing to 10% after nine months. These benefits are in addition to free data rewards through the retailer’s Smart Shopper programme.
“This is real value that adds up over time, just for doing what you’re already doing,” says Moodley.
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