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Grocery retailer Pick n Pay will begin providing mobile phone services to try to grow its financial and value-added services business, seeking to reduce data costs for its customers.
Rather than building infrastructure, Pick n Pay will operate as a mobile virtual network operator, or MVNO, using MTN’s mobile network infrastructure to offer customers prepaid SIM-based access to services including airtime, data and SMS, sold under its PnP Mobile brand. he said Wednesday.
MVNOs, typically targeting the value segment, rent wireless capacity at wholesale prices and resell it at reduced retail prices.
“Our country has very high mobile phone penetration, but data costs have been a barrier. We believe that expanding our services to enter the mobile market will benefit millions of our customers,” said Richard van Rensburg, Director of Technology and Services of Pick n Pay.
Africa’s most industrialized economy has one of the highest data prices on the continent, according to Competition Commissioner Tembinkosi Bonakele. Data costs have come down after mobile operators were forced to cut prices last year.
PnP Mobile, joining fellow retailer Mr Price in the MVNO space, will be linked to the retailer’s Smart Shopper loyalty rewards program.
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