Capitec Launches MVNO, Aims for Data That Doesn’t Expire

Capitec CEO Gerrie Fourie

One of South Africa’s leading financial institutions, Capitec has joined other banks to launch a mobile virtual network operator (MVNO) with the promise of aggressive priced data.

The bank, which is launching the MVNO, called Capitec Connect, on Cell C’s enablement infrastructure, said on Monday that it intends to “disrupt the prepaid market” with a “simplified prepaid solution for voice, data and SMS”.

“Just as Capitec became a challenger within banking, they are now questioning the norms for prepaid mobile data and airtime,” the bank said in a statement.

Capitec CEO Gerrie Fourie
Capitec CEO Gerrie Fourie

Capitec Connect plans to charge R4.50 per 100MB of data, or R45/GB. This, it claimed, is on average 50% below the “normal market price”. The rate remains flat whether clients buy small or larger amounts. Significantly, the data never expires, provided the Capitec Connect Sim is used at least one every six months. 

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“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. 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,” said Capitec CEO Gerrie Fourie in the statement.

Sim cards are available to clients at all Capitec branches and clients can get up to five Sims linked to their profile – the idea being to give access to data and airtime to family members.

Once the Sim is activated, data, minutes, SMS’ and airtime can be topped up on the Capitec banking app, using a short code or via Internet banking.

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Calls are charged 90c/minute, while SMSes cost 25c. Airtime never expires, provided the Sim is used once every six months.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Capitec Bank Launches Prepaid Airtime and Data Offerings

Gerrie Fourie, chief executive officer of Capitec

South African digital banking group Capitec is disrupting the local prepaid market with the launch of Capitec Connect: a new prepaid solution for voice, data and SMS.

At R4.50 per 100 Megabytes or R45 per Gigabyte, Capitec Connect data is apparently on average 50% below the normal market price, and the rates remain flat whether clients buy small or large quantities. The data also never expires provided the SIM is used at least once in 6 months, which means that Capitec clients never lose what they paid for.

Gerrie Fourie, chief executive officer of 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. 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.”

Gerrie Fourie, chief executive officer of Capitec
Gerrie Fourie, chief executive officer of Capitec

The prepaid solution, a partnership with Cell C, seeks to bring digital inclusivity. “Our vision is to bring connectivity to all. We want to help create opportunities for everyone to be able to connect with access to affordable data and digital banking anywhere, anytime.” says Fourie.

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“It is through partnerships such as the one between Capitec and Cell C that we can make a major difference in bridging the digital divide that still exists in our country and we’re very pleased to be part of the solution that enables South Africans to access a digital lifestyle that can truly change their world,” says Cell C chief executive officer, Douglas Craigie Stevenson.

Two of South Africa’s most common hashtags have long been #DataMustFall and #DataAsseblief, demonstrating the nation’s cry for the lowering of exorbitant data costs. 

Regulations proposed in 2017 by ICASA and the National Consumer Commissioner advocated for data to remain valid for at least three years.  These proposed regulations were later removed from the charter and replaced with more lenient provisions.  Capitec is now leading the change by addressing this issue head-on.

Capitec Connect is a Mobile Virtual Network Operator (MVNO) service on the Cell C network. An MVNO provides cellular services to its clients without owning the network infrastructure.  SIM cards are available to clients at all Capitec branches and clients can get up to 5 SIM cards linked to their profile, which makes it easy to give access to data and airtime to family members.

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Once the SIM is activated, data, minutes, SMS’ and airtime can be topped up on the Capitec banking app, using *120*3279# or internet banking. Calls are charged at the low flat rate of 90c per minute, while SMSs cost only 25c. Airtime never expires, provided the SIM is used once every 6 months.

Fourie concludes, “It’s in our DNA to do what is best for our clients. We continue to change the game in banking by asking ‘why?’ and making it simple to help people live better. Now we believe we can also change the game in the way people connect.”

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry