People prefer Vodacom and Capitec Connect in South Africa

Results from a recent MyBroadband survey show that Vodacom is the preferred mobile network in South Africa, while Capitec Connect leads in virtual mobile networks.

MyBroadband Insights recently conducted a survey among more than 2,000 technically-minded individuals in South Africa.

Over 40% of respondents would choose Vodacom if they had to sign up for a new mobile contract, while another third would choose MTN.

Telkom still has a loyal customer base, with 14% of respondents making it their first choice, while Cell C and Rain received votes from only 7% and 4% of respondents, respectively.

Vodacom is South Africa’s oldest mobile network operator, switching on just before South Africa’s first election under universal adult suffrage on 27 April 1994.

Its history begins at Telkom in 1991, when cellular networking pioneer Alan Knott-Craig still worked at the state-owned telecommunications company.

Knott-Craig, then responsible for strategic planning and mobile communications at Telkom, investigated digital cellular technology and became one of the main proponents of introducing GSM in South Africa.

The government decided in 1992 that South Africa would allow competition in the cellular networking space. GSM licences were put to tender in 1993, which Vodacom and MTN won.

Vodacom Group was formed in 1993 with Telkom holding a 50% stake, Vodafone in the UK a 35% stake, and Johann Rupert’s Rembrandt Group holding a 15% stake.

While Vodacom distributed 1,250 cellphones to election officials in 1994 as part of a limited test phase, its official commercial launch date is 1 June 1994.

That was also the date MTN officially launched, although Vodacom had roughly an eight-month head start for its network build.

Whereas Vodacom began as a partially state-owned company with UK shareholders, MTN was a private partnership between M-Net and Cable & Wireless in the UK, with minority state ownership.

Since those early days, Telkom and Rembrandt (later VenFin) exited their stakes in Vodacom. Cable & Wireless exited its stake in 1998.

Telkom then launched its own mobile network operator, 8ta, in 2010, which was rebranded Telkom Mobile in 2013 and became simply “Telkom” in 2014.

26% choose an MVNO

Cell C launched in South Africa before Telkom in 2001, but until recently, it struggled to shake its reputation as a poorer-quality alternative. Rain launched in 2018 as a data-focused operator.

One area where Cell C has carved out a niche is as a mobile virtual network enabler, powering mobile virtual network operator (MVNO) offerings such as Capitec Connect and Shoprite K’Nect.

However, Cell C has faced competition in recent years from MTN, which is the mobile operator behind Afrihost AirMobile and Axxess Mobile.

Further muddying matters from a technical standpoint is that MTN supplies the radio access network services Cell C uses for its MVNO customers.

MyBroadband Insights found that while most participants in its survey preferred the major mobile networks, 26% would choose an MVNO over a traditional mobile network.

MVNOs run by banks were generally the most popular, with 30% choosing Capitec Connect, 22% choosing FNB Connect, and 10% choosing Standard Bank Mobile.

Afrihost Air Mobile was also very popular, with 18% of respondents saying they would choose this network if they had to sign up for a new MVNO.

People say Vodacom has better service than MTN

Participants were split on whether Vodacom or MTN offers the best network and the best value. However, Vodacom won on customer service.

Vodacom and MTN received 43% and 42% of the votes for best network, and 29% and 28% of the votes for best value, respectively.

Respondents also considered Telkom to offer very good value, with 26% voting for it. The best customer service questions had a clearer winner, with Vodacom taking 44% of the vote, followed by MTN at 30%.