The South African telecom regulator has obliged all telecom operators to open their networks to MVNOs. This should facilitate the entry of this type of operator in the fast-growing telecom market.

Melon Mobile, a mobile virtual network operator (MVNO) is expected to officially launch its commercial operations in South Africa. According to Calvin Collett, the company's founder, and CEO, it will launch tomorrow, April 13. Nevertheless, a beta version of its services is currently available to a few users.

Like all mobile virtual network operators, Melon Mobile does not have a physical network infrastructure. The company relies on the network of mobile operator MTN to provide its services.

“What we have done differently is to focus on a purely digital journey. It’s app-based; most of the support, such as self-RICA, is done online. There is no physical paperwork or anything like that. We have tried to digitize the whole journey,”  the CEO said. 

The launch of Melon Mobile comes as the Independent Communications Authority of South Africa (ICASA) seeks to facilitate the entry of MVNOs into the South African telecom market to more effectively meet the growing and increasingly diverse needs of consumers. The regulator has included the launch of a mobile virtual network enablement platform (MVNE) as a requirement for the telecom spectrum license acquired by telecom operators in March 2022. 

Recall that Cell C was for a long time the only mobile network operator that leased its network to MVNE operators in South Africa. MTN and Telkom joined it in 2020 and 2023, respectively. In November 2022, Vodacom announced a process to welcome MVNOs onto its network.

Melon Mobile prides itself on being a fully digital MVNO. The company wants to rely on an innovative offer to secure shares in the national telecom market. It targets 0.5% to 1% of the market over the next five years.

Isaac K. Kassouwi