Is FNB set to become South Africa’s next mobile operator?

Is the world’s most innovative bank getting ready to launch its own mobile network? That answer may be yes, according to reports which suggest that First National Bank is in negotiations with South African operator Cell C to use the network to launch its own mobile offerings.

According to MyBroadband, a deal between the two would see FNB become Cell C’s second mobile virtual network operator (MVNO) — an operator which runs its network on the back of another’s infrastructure. Cell C already provides this service to Virgin Mobile, which launched as the country’s first (and to date, only) MVNO in 2006.

FNB has long recognised the importance of mobile — it was the first South African bank to launch mobile banking apps, has many SMS-based services and also sells smartphones and tablets to its customers. Its new dotFNB branches could easily be mistaken for a gadget store, as they allow customers to interact with the bank’s digital services and browse smartphones, tablets and other devices (and purchase them on plans) from within the store. The new report suggests that this focus on mobile could become the foundation for a possible network, as devices could be sold with FNB SIM cards and pre-installed apps.

Both FNB and Cell C declined to shed any further light on the rumours, although Cell C executive head of communications, Karin Fourie, told MyBroadband that the operator is currently discussing potential MVNO deals with a number of parties, which it cannot disclose details about as the negotiations are confidential.

In a statement to Memeburn, FNB spokesperson and head of corporate communications, Virginia Magapatona, said the bank will “continue to enhance its services where it benefits our customers”.

“We continue to hold confidential discussions with various operators, and we will only be in a position to formally announce any new features or customer benefits once launched,” she said. “FNB has a telco license and as such is already able to provide voice and data services. As one of the largest bulk SMS users and airtime distributors, we have relationships with all mobile network operators and will continue to work closely with all parties.”