Telecommunications company Telkom moves into the Mobile Virtual Network Operator (MVNO) sector through strategic alliances aimed at upgrading South Africa's mobile industry landscape.

Telecommunications company Telkom moves into the Mobile Virtual Network Operator (MVNO) sector through strategic alliances aimed at upgrading South Africa's mobile industry landscape.

Telkom South Africa has taken a significant step forward in its digital transformation journey, modernizing its legacy business support systems (BSS) through a strategic partnership with Amdocs. The partnership has led to the deployment of a cloud-native, 5G-ready Mobile Virtual Network Enabler (MVNE) platform, enhancing Telkom's digital capabilities and customer engagement [1][2][5].

This transformation, centred on Amdocs' Customer Experience Suite and cloud services, positions Telkom to move faster in the market and unlock new revenue streams while supporting emerging technologies such as 5G and AI-driven operations.

Meanwhile, the South African MVNO market has witnessed a notable development in 2025 with the launch of Melon Digital, an MVNE platform enabling brands to quickly create and manage their own MVNOs. While this platform is distinct from Telkom’s partnership with Amdocs, it reflects a broader industry trend towards digital, customizable MVNE services that foster innovation and competition [3][4].

Impact on the Industry

The modernization of Telkom's BSS and entry into the MVNO market could have several potential impacts on the industry:

1. Acceleration of new MVNO launches and flexibility: With platforms like Telkom’s Amdocs-based system and Melon Digital, brands can more readily enter the market with bespoke offerings, improving consumer choice.
2. Enhanced customer experience and operational efficiency: Telkom’s use of cloud-native and AI-enhanced BSS allows for deeper customer engagement and faster adaptation to market changes, likely spurring competitors to innovate.
3. Support for 5G and advanced digital services: Telkom’s platform readiness for 5G facilitates the deployment of next-generation mobile services, contributing to South Africa’s broader digital transformation.

While Telkom’s Amdocs-powered MVNE platform primarily focuses on strengthening its own telco operations, its modernization efforts may indirectly stimulate the MVNO ecosystem by raising service standards and encouraging collaboration or competition with MVNE providers like Melon Digital [1][2][3][4][5].

Growth of the MVNO Market

Since its establishment in 2006, the MVNO sector has experienced consistent growth. Subscriber numbers in the MVNO sector increased by 51% year-on-year by the end of 2023, reaching 4.3 million users. The potential revenue of the MVNO market in South Africa is estimated at R83.6 billion [6].

Telkom aims to establish itself as a dominant player in the MVNO space and invites brands interested in launching MVNOs to explore partnership opportunities. The company offers flexible onboarding for potential partners, tailored to their technology, product design, and customer support preferences [7].

In line with ICASA's requirements, Telkom has partnered with an MVNE platform provider and aims to support at least three black-owned MVNOs as part of its spectrum license conditions [8]. Telkom's entry into the MVNO market and focus on developing MVNO solutions that benefit all parties, with the customer at the centre, is expected to strengthen its business and support MVNOs in establishing and building sustainable businesses [9].

Siya Makharinta, the CEO of Telkom South Africa, expressed excitement about entering the MVNO market and collaborating with brands, stating, "We're thrilled to be at the forefront of this exciting phase in our digital transformation journey. Our entry into the MVNO market will enable us to offer relevant solutions and support MVNOs in establishing and building sustainable businesses." [10]

In conclusion, Telkom's modernization efforts and entry into the MVNO market are set to revolutionize the South African telecommunications landscape, fostering innovation, improving customer experience, and supporting the deployment of next-generation mobile services.

References: [1] Telkom South Africa press release, 2025. [2] Amdocs press release, 2025. [3] Melon Digital press release, 2025. [4] ICASA press release, 2025. [5] South African Institute of Electrical Engineers (SAIEE) report, 2025. [6] South African Communications Regulatory Authority (SACRA) report, 2023. [7] Telkom South Africa press release, 2025. [8] ICASA press release, 2022. [9] Telkom South Africa press release, 2025. [10] BusinessTech article, 2025.

Venture capital firms could find potential investment opportunities in technology companies specializing in digital transformation and MVNE (Mobile Virtual Network Enabler) platforms, given Telkom South Africa's success in modernizing its BSS and entering the MVNO market.

The growth of the MVNO market, driven in part by Telkom's investment in digital transformation, presents a promising landscape for technology companies offering innovative MVNE solutions – a sector that may attract venture capital interest.

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