Standard Bank has rebooted its mobile device offering with a broader range of tech brands and financing terms to boost customers for its telecom business.
Across SA and the broader African continent, access to affordable devices continues to be a hurdle that operators are working to overcome as part of the push to grow their user bases, particularly for data and internet services.
As global telecom body the GSMA puts it: the continent’s telecom operators have done much to expand their networks, but much of that infrastructure is yet to be fully used because many would-be consumers simply cannot afford devices with which to connect to the internet.
In that vein, Vodacom, SA’s largest mobile operator, recently launched a service allowing for smartphones to be paid off daily as a way to increase device affordability.
As such, Standard Bank’s mobile virtual network operator (MVNO) has seen an opportunity to breathe new life into its programme, which offers devices at cheaper rates to entice customers.
“Devices are a key growth area for us and the natural next step for Standard Bank Connect. We aim to be the provider known for offering comprehensive connectivity solutions that are simple, valuable, and flexible,” said Kartik Mistry, head of Standard Bank Connect.
Standard Bank has offered telecom services for a number of years, having introduced its MVNO offering in 2018 in partnership with Cell C. The unit has grown to more than 300,000 mobile customers, having now shifted its network services to MTN.
MVNOs are usually non-telecom businesses such as FNB, Capitec, Mr Price Mobile and Pick n Pay, which lease network infrastructure from mobile operators to sell data and voice services to customers.
Standard Bank said customers can now purchase devices from brands such as Apple, Samsung, Huawei, Honor, Vivo, Lenovo, HP and Mecer, with categories spanning smartphones, tablets, laptops and wearables.
The selection aims to meet the diverse needs of customers, whether they are looking for high-performance smartphones or essential devices for school and work.
“Over time, we’ll expand our offering to include more brands, categories, and features, ensuring our customers always receive exceptional value,” said Mistry.
In a market where mobile providers typically force bundled SIM plans with devices, the bank has sought to stand out by offering “greater flexibility”. Customers simply need to have an active Standard Bank Connect SIM card to qualify for financing.
The bank said it created multiple payment options, including upfront cash payments or financing terms of 12, 24 or 36 months. Additionally, customers can reduce monthly instalment amounts by opting to pay up to 50% of the device cost as a deposit.
For several years, the largest player was FNB. According to information communication technology research and consulting company Africa Analysis, Capitec Connect has emerged as SA’s largest MVNO, followed by FNB Connect. Both players boast more than 1-million SIM cards in the market, far outpacing Standard Bank’s reach.
MNVOs constitute about 2% of total mobile subscribers in SA. Cell C sees enough room in the market to have up to 10-million MVNO customers on its network. Banks, in particular, have launched mobile networks as a way to increase consumption of their digital banking services.
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