TFG launches mobile network to piggyback on MTN

TFG Limited, the owner of Foschini, Markham, Exact, Jet, @ home and 15 other retail brands, has launched a mobile virtual network operator (MVNO) called TFG Connect, that will piggyback on MTN’s network.

TFG is the fourth major retailer to enter the space, following Mr Price, Pick n Pay and Shoprite k’nect.

FNB and Standard Bank also operate MVNOs for their customers, with the former believed to be the largest in the country.

The entry into the space has been somewhat muted, with targeted communication to its customer base. It has also positioned the offer to Jet (and Jet Cellular) customers in particular.

Airtime top-ups can be done in store, online on its TFG Connect website, or via USSD. Recharges via USSD will be billed to customers’ TFG Money account.

In other words, these purchases will be on credit. It also offers top-up contracts (‘Pay Monthly’), where the monthly fee is charged to the customer’s account.

SIM cards are available at TFG stores at a cost of R9. The linking of the SIM card to the account is automatic and part of the RICA process. All new subscribers get 200MB per month for six months, as well as a once-off 250MB WhatsApp bundle and R29 airtime.

TFG is clearly using its MVNO to further incentivise its account holder base. If customers pay their accounts in full each month, they will receive 200MB of data.

Paid-up customers who subscribe to any of TFG’s magazines will receive airtime to the value of the highest subscription. Paidup active Jet Club members will receive R46 airtime (the value of the subscription) by the 7th of the following month.

Recharges are at a 10% discount, so R10 worth of airtime costs R9 while R50 worth of airtime costs R45.

Data prices are either in line or slightly cheaper than MTN’s.

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