By Damian Burnett, Sales Director at VAS-X
In recent years, we’ve seen countless successful brands dipping their toes into the mobile virtual network operator (MVNO) space.
The market has evolved into a dynamic space where non-traditional entrants, ranging from major retailers to insurers, are using connectivity not as their main product but as a tool to deepen customer loyalty and unlock new revenue streams.
Capitec’s move into the telecoms space with Capitec Connect is a local success story. Launched in September 2022 in partnership with Cell C, the MVNO’s active user base now exceeds 1.6 million and according to the bank’s interim results for the six months ended 31 August 2025, Capitec Connect’s net income grew sharply, reaching R165 million, which is more than double the R69 million reported in 2024.
While these numbers are impressive, not every brand has the appetite, expertise, or resources to venture into the MVNO space.
In a recent article, we unpacked a few reasons why some MVNOs fail and others succeed. You can read it here, but basically, the article highlights that many greenfield MVNOS never get off the ground because they lack an existing customer base, established billing relationships, or a deep understanding of their potential customers’ needs and preferences.
But imagine if greenfield MVNOs had teamed up with established, trusted brands, providing their telecom expertise and regulatory know-how to help launch an MVNO successfully.
In this symbiotic relationship, the brand can focus on its core business, while the MVNO taps into the brand’s existing customer relationships to create a new revenue stream. The result is a real win-win, think faster market entry, lower risk, and customer engagement based on real insights.
Spar Mobile is a prime example of this kind of relationship. The retailer launched its MVNO in partnership with a tech company called megsApp. Spar sells groceries and has a well-established brand.
MegsApp is a new player in the MVNO space with few customers and an unestablished brand. By joining forces, we now have Spar Mobile, which has the potential to be big, provided that it can fully leverage what each party brings to the table.
The partnership model removes barriers preventing brands from capturing the MVNO opportunity. By co-creating an MVNO, both parties can focus on what they do best: the brand deepens customer engagement and opens new revenue streams, while the telco ensures seamless service delivery and compliance.
And when these partnerships are complemented by a strong technology partner, like VAS-X, they can access the platforms, integrations and support needed to deliver tangible business results.
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