South Africa’s mobile virtual network operator (MVNO) sector is undergoing a structural shift, with 2026 expected to see deeper convergence of telecoms and financial services, as fintech-led operators move to offer telecoms-as-a-service.
This is according to “BMI’s technology key themes for 2026” report.
Speaking during a recent webinar, BMI technology analyst Vakai Mutambirwa described 2026 as a turning point: MVNOs across the globe are transitioning from being basic branded resellers into fuller-service digital operators with deeper service capabilities and stronger control over their technology stacks.
This year, she noted, will see stronger growth in full MVNOs and IOT-focused MVNOs that have greater control, flexibility and product depth. Crucially, they are moving beyond consumer voice-and-data bundles into enterprise and platform-based services.
The biggest catalyst: MVNOs integrating financial services into their core mobile offerings.
This year is seeing the normalisation of telecoms-as-a-service − where connectivity is embedded within financial platforms, super apps and enterprise ecosystems rather than sold as a standalone product.
Operators are now enabling brands to integrate customised mobile services directly into financial ecosystems, driven by convergence, improved capabilities, market growth and vertical expansion, Mutambirwa explained.
“Businesses increasingly require reliable connectivity across networks and regions. At the same time, consumers want bundled digital services − connectivity paired with payments, wallets and financial tools. This has given rise to fintech-led MVNOs offering telecoms-as-a-service through partnerships and acquisitions. Telecoms services are being embedded within broader ecosystems that include cross-border payments, digital wallets, crypto-enabled services and loyalty and retail rewards.”
In SA − where banking penetration is high but digital competition is intense — MVNO models allow financial institutions and retailers to defend customer relationships against mobile money operators and fintech disruptors.
The result is a converged service model: telecoms becomes one layer within a larger digital super app strategy.
“In Africa, we are seeing similar trends when it comes to consolidation − a lot fewer mobile network operators − and the market is really moving from experimentation to MVNO expansion,” Mutambirwa explained.
“South Africa, which is probably the biggest MVNO market, saw a move in regulation in 2025, which will really open up innovation in that market. Markets like Nigeria, Kenya and Senegal are also key markets that are digitally mature and are introducing MVNO-specific regulations that are reducing red tape to acquire MVNO licensing and reduce costs specifically in the consumer segment.”
Regulatory reform in SA improved wholesale access and infrastructure-sharing commitments. These changes, alongside broader telecom consolidation trends, strengthened the commercial foundations for MVNO expansion.
Africa, she continued, is seeing an increase in MVNO brands that are partnering with the local banks in efforts to compete with the mobile money operators and they are able to offer converged services.
“The same thing is happening in the retail market across Africa, where retail-branded MVNOs are collaborating with fintech [firms] and banks to offer a wide range of services and rewards-based approach. I think importantly, this is a lot to do with expansion and moving into the next phase. It's relatively in the more mature markets and there's lots of space to grow.”
IOT-focused MVNOs
While consumer MVNOs dominate, the enterprise and IOT layer is scaling rapidly across the globe, according to BMI.
This, as MVNOs are increasingly pivoting toward IOT connectivity to escape the highly-competitive, low-margin consumer mobile space.
The market is witnessing strong global growth in wearables, connected cars, smart energy devices and industrial sensors driving machine-to-machine connection expansion.
“As IOT deployments spread across fragmented networks and geographies, enterprises face growing complexity in managing millions of connected devices. This is driving demand for unified connectivity management platforms − network-neutral systems that provide centralised device management, automation, policy control, diagnostics and compliance oversight,” she noted.
Rather than juggling multiple operator portals and workflows, enterprises want a single orchestrated platform view.
“IOT-focused MVNOs that offer carrier-neutral services, strong compliance capabilities automation tools, eSIM support and network-agnostic architecture are best positioned to win high-value enterprise contracts.”
On the other hand, traditional operators that fail to integrate these services, risk losing enterprise clients that increasingly expect seamless, compliant and borderless connectivity, Mutambirwa warned.
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