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Mirage signs with Cell C for virtual networks

Jon Tullett
By Jon Tullett, Editor: News analysis
Johannesburg, 28 Nov 2013
Jose Dos Santos, acting CEO at Cell C, hopes MVNOs will open new doors for the operator via popular consumer brands.
Jose Dos Santos, acting CEO at Cell C, hopes MVNOs will open new doors for the operator via popular consumer brands.

Mirage Telecom, Comverse and Cell C have signed an agreement to create a mobile virtual network enabler (MVNE). Mirage Telecom will use Comverse software and Cell C's network to create a platform for new mobile virtual network operators (MVNOs) to enter the market.

Prins Mhlanga, executive director at Mirage Telecom, describes the services as "Africa's first MVNE", and hopes to see big brands, such as banks and retail chains, signing up to offer mobile services under their own names.

MVNOs are a popular way for non-operators to establish mobile services, and for operators to provide targeted niche solutions for differentiation, a key strategy in a market as mobile-saturated as SA.

"Brands will have the freedom and flexibility to develop unique products and services that resonate directly with the customers they know best," Mhlanga said.

Cell C's existing MVNO customer, Virgin Mobile, will remain with Cell C under their current agreement.

Other players are also lining up MVNOs to attack the local market. This year, Orange announced its plans to expand into SA via an MVNO. And Mirage may not actually be the first African, or even the first South African, MVNE: MVN-X, part of the Ignition Group, signed a wholesale agreement with Cell C earlier this year and also describes itself as an MVNE, with plans to launch three MVNO customers before the end of the year, one of which it describes as a "major retailer".

Cell C has seen strong subscriber growth this year, now sitting at around 13 million subscribers, according to Jose Dos Santos, Cell C's chief commercial officer and acting CEO. That equates to 17% of the market share, according to research by World Wide Worx.

Much of that growth has come at the expense of its rivals, primarily MTN, said Arthur Goldstuck, MD at World Wide Worx.

Although the MVNO promise is broad, in real terms, Africa as a whole has yet to embrace the model. Only 0.4% of SIMs on the continent are provisioned through MVNOs, according to Informa Telecoms & Media. World Wide Worx's research shows Virgin Mobile barely moving the needle at around 1% of the market.

Despite this, Mirage and its partners are optimistic about their prospects. "This platform is poised to power exponential growth in the South African MVNO sector, helping to open doors to a rich variety of business opportunities and partners for differentiation, cash flow and growth," enthused Denis Bernaert, MD EMEA at Comverse.

"We are pleased to have played an integral role in launching the MVNE model in this country and look forward to it providing a place of innovation for other businesses to thrive," said Dos Santos.

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