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FNB takes on fibre market

Mudiwa Gavaza Technology Writer gavazam@businesslive.co.za

In another sign of banks and telecom operators infringing on each other’s turf, FNB Connect — the cellphone services unit of one of the country’s biggest banks — has signed a deal with telecom company Vox to offer its business clients fibre internet connectivity.

In another sign of banks and telecom operators infringing on each other’s turf, FNB Connect — a cellphone services unit of one of the country’s biggest banks — has signed a deal with telecom and technology company Vox to offer its business clients fibre internet connectivity.

FNB Connect is a mobile virtual network operator, which means it leases network infrastructure from mobile operators to sell data and voice services to its customers.

Mobile virtual network operators, which include Mr Price Mobile and Standard Bank Mobile, contribute about 2% of the total mobile subscribers in SA. With about 1-million customers, FNB Connect is the largest mobile virtual network operator in the country, according to Cell C, whose network the bank uses.

Fibre assets have grown in significance. At the turn of the century and in the 2010s, the race was about which operator had the most cellphone towers. Now the next frontier is fibre.

Telecom companies continue to report growing data revenues and internet use on their networks, driving up the need for a solid fibre infrastructure base. So big is this market that Vodacom recently signed a deal with Remgro’s telecom unit for R13bn to grow its piece of that pie.

FNB says it has teamed up with Vox to launch “a fibre solution to help SMEs with their telecommunications needs”.

The service will be available to FNB business account holders, including sole proprietors. In addition, the bank is introducing software vouchers for products like Microsoft 365 and antivirus software from McAfee and Norton. Customers can access these via the banking app.

ONE PLATFORM

At a media briefing on Monday, FNB CEO Jacques Celliers said integrating digital banking and telecom services into one platform “is a key differentiator” for the Connect unit.

In recent years, banks and telecom operators have started competing for the same customers as mobile operators double down on financial services, driven by mobile payments as a new growth area in the face of falling mobile and data revenues. At the same time, FNB and Standard Bank, two of the country’s largest banking groups, have launched mobile networks as a way to increase consumption of their digital banking services.

“We aim to leverage the efficiency of our digital platform to help our commercial and retail customers manage their business and individual needs,” Celliers said.

“The introduction of fibre is premised on our belief that effective, high-speed, reliable and secure telco services are critical to running a successful business,” he said.

While customers can go to Vox and sign up directly, FNB Connect CEO Bradwin Roper is selling the incentive that customers can get “R5,000 in additional value by coming through the FNB link”, referring to perks like having technicians on call and IT risk assessments done for a business as added extras for the service.

Roper is hoping to take advantage of the growth in remote working and digitisation in business brought on by the Covid-19 pandemic and its subsequent lockdowns.

“Our fibre proposition and software vouchers will help customers with increased productivity and security,” he said.

Over the years, FNB has gained a reputation for its digital banking push and not being afraid to try new things, with the introduction of eWallet a decade ago and a mobile banking app at the heart of its strategy for an all-in-one e-commerce platform or super app.

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2021-12-07T08:00:00.0000000Z

2021-12-07T08:00:00.0000000Z

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