Cell C’s MVNO surge reveals wholesale growth model for African telcos

Cell C, South Africa’s third‑largest mobile operator, posted strong FY26 results driven by its wholesale and MVNO business. Wholesale revenue rose 20% year‑on‑year to R1.8 billion ($111.8 million), and the number of subscribers using services from other brands on its network reached 5.7 million by end‑May 2026, up 27.3% from 4.5 million a year earlier. The telco ended the year with 8.9 million direct subscribers (+17.1%) and total revenue of R12.64 billion ($785.2 million), up 13.5%. Adjusted EBITDA increased 16.9% to R2.4 billion ($147.8 million). Prepaid revenue grew 9.7% to about R5.8 billion ($360.2 million) with prepaid subscribers up 1.3 million, while postpaid revenue rose modestly 1.2% to R2.3 billion ($142.9 million) and ARPU climbed to R242 ($15.03). Data traffic jumped 47% year‑on‑year, voice traffic fell 4%, and net debt dropped sharply to R2.02 billion ($125.5 million) from R5.7 billion a year earlier. Cell C expects double‑digit wholesale growth to continue in FY27, though upcoming data‑rollover regulations and lower mobile termination rates may pressure some revenue streams.

This trend matters for Nigerian telecoms and entrepreneurs because it proves the MVNO/wholesale model can deliver rapid scale without building costly radio networks. Nigerian operators looking to boost data revenues or new entrants seeking low‑cost market entry could replicate Cell C’s partnership approach. The surge in data traffic also signals rising consumer demand for data services across the region.

Would you consider launching or partnering with an MVNO in Nigeria to tap into the growing data market, or watch how existing telcos respond to similar wholesale opportunities?

SOURCE: https://techcabal.com/2026/08/21/cell-c-growth-plans/