The wholesale division of subsidiary Cell C increased its revenue by 20%, reaching R1.76 billion by May 31, 2026. During this period, it attracted 1.2 million subscribers from mobile virtual network operators (MVNOs). Data traffic from these MVNO users grew by an impressive 131%, significantly surpassing the group's overall growth of 47%, making it the strongest indicator within the company.
Currently, the operator serves 5.71 million MVNO subscriber lines, representing a 27.3% increase compared to the previous year. The company estimates its market share in South Africa's MVNO sector at 80–85%. Cell C's strategy, announced prior to its listing, is to provide a platform for banks and retailers rather than directly competing for their customers.
Among Cell C's most prominent MVNO tenants are Capitec Connect, which had over two million of its own subscribers at the half-year reporting date, as well as FNB Connect and Shoprite's Knect Mobile.
Cell C claims that wholesale revenue does not incur distribution, marketing, or base management costs. However, the situation is more complex than the growth rates suggest: MTN has expressed interest in becoming the leading MVNO wholesale provider in South Africa, and Vodacom has entered the hosting market (albeit without great enthusiasm), both networks on which Cell C itself operates. In 2024, Standard Bank migrated approximately 300,000 subscribers from Cell C to MTN.
During the results call, when asked how Cell C defends its dominant position in the wholesale market against its own carriers, CEO Jorge Mendes told TechCentral that the calculations favor the company. He noted that customers switching to MVNOs leave networks in proportion to their market share, meaning Cell C, as the fourth-largest mobile operator in South Africa by subscriber count, loses the fewest customers and has the greatest incentive to bring business back on a wholesale basis.