South African app-based networks rocking against Vodacom and MTN

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South African app-based networks rocking against Vodacom and MTN
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Mobile virtual network operator prices in South Africa show how smaller companies can use Vodacom and MTN’s networks to compete against them.

Multiple small mobile virtual network operators have launched significantly cheaper prepaid mobile data services than Vodacom and MTN since mid-2023.

However, they can charge better mobile data prices while still making a profit due to lower operating costs because they are digital first. To facilitate customer onboarding, they offer both downloadable eSIMs and physical SIMs via courier delivery, often for free or at very low prices for first-time buyers.

We found the MVNOs were generally much more affordable than the two big networks when it came to mobile data. MyBroadband also found it interesting that MTN was often the most expensive, considering Afrihost Air Mobile and Melon Mobile roam on MTN’s network.Capitec Connect, Shoprite K’Nect, and Spot Money also offer attractive pricing but were excluded because they require visiting a branch or opening up a bank account to take up a subscription.

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