South African MVNO Nashua Mobile will sell its customer base back to Vodacom and MTN, the country’s two largest operators, for around R2.26bn (US$215m).
It is also pursuing the sale of its Cell C customers to a third party, Nashua’s owner Reunert…
South African MVNO Nashua Mobile will sell its customer base back to Vodacom and MTN, the country’s two largest operators, for around R2.26bn (US$215m).
It is also pursuing the sale of its Cell C customers to a third party, Nashua’s owner Reunert said in a statement today.
The MVNO has been providing mobile services using the three players’ networks. But in the face of a “saturated, highly competitive market”, the company has decided not to renew its agreements with the MNOs.
Reunert’s and Nashua’s boards concluded that the business is unlikely to generate acceptable returns.
“[Nashua] has experienced declining average revenue per user (ARPU) due to lower network tariffs and lower out of bundle spend by customers. The decline in the least cost routing (LCR) business and competitive pricing in the market have further reduced revenue. Customer financing has increased as more subscribers move to expensive smartphones requiring higher level customer funding,” it said.
Nashua expects the migration of its customers to the mobile operators to take several months. The process needs approval from the country’s competition authorities.
