Changes following Friendi Group merger start taking effect at Virgin Mobile SA

Virgin Mobile South Africa announced the closing of 30 of its 38 retail stores in the country as it looks to refocus its marketing efforts. The initiative has already commenced and is expected to conclude during the first half of 2013.

The MVNO in South Africa merged its operations with Dubai-based Friendi Group, which is led by Mikkel Vinter. Together the two MVNOs are known as Virgin Mobile Middle East and Africa (VMMEA), and the company said the aim of the changes is to deliver an improved and differentiated customer experience by leveraging VMMEA best practice and investment in improved systems and processes.

Virgin Mobile South Africa will convert the eight remaining stores from sales focused franchise stores into full service stores offering its entire range of products and services including sales, renewals, upgrades and customer service and advice.

The company will also be offering online sales and service through a new improved website and is exploring new, alternative sales channels.

Vinter had suggested that changes would be made in South Africa in order to bring the company to profitability in that market. Speaking to Comm. in June, Vinter said: “Yes, there are still losses at Virgin Mobile South Africa, but I think what is required are some structural changes and tweaks, which I believe can turn the operator around quite quickly.”

“Virgin Mobile South Africa is a good business with a large pool of talented individuals; it is a real asset to VMMEA,” Vinter said. Virgin Mobile South Africa employs approximately 250 staff and it was announced at the time of Friendi Group’s arrival, that the company’s CEO, Steve Bailey is stepping down, to be replaced by a “highly experienced candidate.”