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- Capitec Connect launches on Monday and is a mobile service partnership between the bank and Cell C.
- The Mobile Virtual Network Operator provides data that never expires if the SIM is used at least once in six months.
- The service offers customers 100 megabytes at R4.50, or R45 per gigabyte, and rates remain flat regardless of the quantity bought.
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Capitec, the country's largest retail bank by customers, has ventured into the mobile phone business with the launch of its virtual mobile network that promises customers cheaper data that doesn't expire.
Capitec Connect, a partnership between the bank and Cell C, aims to disrupt the prepaid mobile business, currently dominated by large operators, with the possibility of further consolidation after MTN expressed interest in buying Telkom. Capitec's peers have also been looking to jump on the digital bandwagon and diversify their service offerings, and Standard Bank and FNB are also mobile virtual network operators, with SB Mobile and FNB Connect, respectively.
The new service is expected to be a 'game changer' for prepaid voice, data and SMS service and bring seeks to bring "digital inclusivity", Capitec says.
"South Africans have been complaining about the cost of data. It's expensive and complicated. Bundle pricing, off-peak and peak rates, and the fact that your data expired are all things that make no sense," said Capitec CEO, Gerrie Fourie.
"We're changing this by giving our clients access to a mobile solution that is simpler to understand, much more affordable and can be recharged easily on our digital channels."
As a Mobile Virtual Network Operator (MVNO), the bank will offer cellular services without owning the network infrastructure and will rely on the Cell C network.
Capitec Connect offers customers 100 Megabytes at R4.50 or R45 per gigabyte, and the rates remain flat whether clients buy small or large quantities.
Capitec Connect says its data is on average 50% below the price consumers normally pay.
The biggest plus is that Capitec Connect data never expires if the SIM is used at least once in six months. According to the Draft End-user and Subscriber Service Charter Amendment Regulations, the Independent Communications Authority of South Africa (Icasa) stated that data bundles must remain active for six months before they expire, excluding promotional packages.
Capitec, which launched in 2001, has a customer base of 18.1 million as of the end of February 2022 and customers can purchase the SIM cards at Capitec branches. Capitec's core focus is the lower segment of the market and the bank has grown rapidly over since launching 22 years ago.
