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South African telecom operator Cell C is increasingly relying on mobile virtual network operators (MVNOs) and wholesale services to drive its next phase of growth, as the company continues to reshape its business around an asset-light model.
The operator now has 5.7 million subscribers using services on its network through MVNO partnerships, turning a segment that was once secondary to its traditional mobile business into an increasingly important source of growth.
MVNO Business Gains Momentum
MVNOs are telecommunications companies that sell mobile services to customers without operating their own radio network. Instead, they use capacity provided by network operators.
For Cell C, this model has become an important part of its strategy as the company seeks to grow its customer base while limiting the heavy capital requirements associated with maintaining a nationwide mobile network.
The company has built a wholesale business around providing network access to MVNO brands, allowing those businesses to serve their own customers through Cell C’s infrastructure.
The 5.7 million MVNO subscribers connected to Cell C’s network demonstrate the scale the business has achieved.
A Different Path to Growth
Cell C’s strategy represents a significant change from the traditional approach used by major mobile operators.
Rather than relying exclusively on acquiring customers directly under the Cell C brand, the company can generate value by providing network capacity to other brands.
This allows Cell C to participate in customer growth across the wider mobile market, even when those customers do not directly subscribe to Cell C.
The approach also reduces the pressure to continuously spend billions of rand building and maintaining its own network infrastructure.
Asset-Light Strategy Supports Turnaround
The MVNO strategy is part of Cell C’s wider turnaround following years of financial pressure.
The operator has increasingly adopted an asset-light network model, relying on partnerships with other operators for network access rather than maintaining the same level of infrastructure ownership as its larger competitors.
The strategy has helped reduce capital requirements while allowing Cell C to concentrate more heavily on customers, products and wholesale opportunities.
The company’s improving financial position has also been reflected in its latest results. Cell C reported a 57.4% increase in full-year headline earnings, supported by stronger prepaid revenue and a significantly lower debt burden following its balance-sheet restructuring.
Double-Digit Growth Expected
Cell C expects the momentum in its MVNO and wholesale operations to continue.
The company has indicated that double-digit growth is expected to continue into its 2027 financial year, suggesting that wholesale connectivity will remain central to its expansion strategy.
This could give Cell C an additional route to growth at a time when competition among South Africa’s major mobile operators remains intense.
Cell C Is Becoming More Than a Mobile Brand
The development is gradually changing how Cell C’s business should be viewed.
Instead of measuring its prospects solely through the number of customers carrying a Cell C-branded SIM card, the company is increasingly operating as a network and connectivity platform serving multiple brands.
That distinction is important because its network can generate revenue from customers who may never interact with Cell C directly.
The model also creates opportunities to work with retailers, financial institutions and other businesses seeking to launch branded mobile services without investing in a complete telecommunications network.
The Bigger Picture
Cell C’s growing MVNO business highlights how the telecommunications industry is evolving beyond the traditional battle to acquire direct subscribers.
For smaller operators, infrastructure-sharing and wholesale models can provide a path to scale without requiring the enormous investment needed to build nationwide networks.
For Cell C, the strategy offers an opportunity to turn its network capabilities into a broader wholesale business while continuing its financial recovery.
With 5.7 million MVNO subscribers already using its network and double-digit growth expected, the company is betting that its next chapter will be driven not only by customers who choose Cell C, but also by businesses that choose to build their own mobile offerings on Cell C’s network.
