Blue Label can expect more competition in prepaid market
One analyst says with more digital banking apps, operators can bypass distributors by having users buy data and airtime on their own platforms
As if Cell C’s woes weren’t enough for its biggest shareholder, Blue Label Telecoms' core business could come under pressure from cellphone operators who are seeking to enter the same market to cut costs.
Analysts say Blue Label's main business of selling prepaid airtime and electricity vouchers will experience more competition in the future as existing mobile network operators increasingly move into the same segments. Mobile network operators are adding more digital services to their apps, including bill payments, to make it a one-stop-shop for online transactions. This will result in reduced fees for Blue Label, which is distributing and reselling the prepaid airtime and SIM card starter packs on behalf of mobile network operators.