Cell C started a war and lost. They may not be around for much longer

Cell C declared a war on tariffs, and lost. Now South Africa’s third largest mobile network might be in trouble if its CEO, Jose dos Santos, is to be believed.

“If current deals in the industry all pass regulatory muster we might not be around in a few years’ time,” dos Santos told Parliament earlier this week. “We need remedies to allow small players to stay in the game,” he said.

“Cell C is in a very difficult position,” says Editor of TechCentral.co.za Duncan McLeod. “However, I think dos Santos is being overdramatic.”

Cell C is losing the war they started

“Cell C is the smallest player in a market that has, through their own actions, become very competitive,” explains McLeod.

“Vodacom’s acquisition of fixed-line operator Neotel and a network-sharing deal between MTN and Telkom Mobile is going to make life very difficult for the small operator. It’s hard to see how Cell C will be able to compete if these deals go through.

“Cell C does not have the balance sheet to contest on a like-for-like basis,” says McLeod. “Vodacom, for example, have spent R5.5-billion in the past six months to expand its mobile network. It’simpossible for Cell C to match this!"

Bye-bye Cell C; hello Orange or Bharti Airtel?

McLeod does not think Cell C is about to go away. “However, shareholders might soon say ‘enough is enough’ and decide to sell the company. We could see a large, international player such as French multinational Orange and India’s Bharti Airtel coming in.”

Listen to the Soundcloud clip for more detail.

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Urban Organics is CapeTalk's 2017 SBA winner

Urban Organics is CapeTalk's 2017 SBA winner

The company designs and develops hydroponics and aquaponics for urban and rural communities.

Nkosazana Dlamini-Zuma sworn in as MP, mum on cabinet reshuffle

Nkosazana Dlamini-Zuma sworn in as MP, mum on cabinet reshuffle

Dlamini–Zuma was sworn in behind closed doors in the office of the Deputy Speaker of the National Assembly on Thursday afternoon.

Ocean View activist speaks: We have had 20 murders in 2017 alone

Ocean View activist speaks: We have had 20 murders in 2017 alone

Sharone Daniels, a community activist in Cape Town's Ocean View says they need police intervention to end gang violence.

Business in Africa: The rising interest in art

Business in Africa: The rising interest in art

Ambassador Advisory's Refilwe Moloto says the rising interest in art over the past decade cannot be overestimated.

When Trevor Noah left - who took over customer experience at Cell C?

When Trevor Noah left - who took over customer experience at Cell C?

Customer experience is no laughing matter, as consumers like to remind brands on an ongoing basis.

Disgruntled Cell C banner owner calls in to 702

Disgruntled Cell C banner owner calls in to 702

Disgruntled Cell C customer calls into 702 to explain why her boss commissioned the banner.

Popular articles
KPMG SA’s new CEO opens up about the future of the disgraced auditing firm

KPMG SA’s new CEO opens up about the future of the disgraced auditing firm

The Money Show’s Bruce Whitfield interviews KPMG South Africa CEO Nhlamu Dlomu.

Ocean View activist speaks: We have had 20 murders in 2017 alone

Ocean View activist speaks: We have had 20 murders in 2017 alone

Sharone Daniels, a community activist in Cape Town's Ocean View says they need police intervention to end gang violence.

Civil engineer devises plan to use stormwater in Cape Town

Civil engineer devises plan to use stormwater in Cape Town

Civil engineer and Ph.D. researcher John Okedi speaks to CapeTalk host John Maytham about his plans.

Zuma is the ANC. The ANC is Zuma, the two inseparable - Kgalema Motlanthe

Zuma is the ANC. The ANC is Zuma, the two inseparable - Kgalema Motlanthe

Former President Kgalema Motlanthe sat down for a lengthy and candid interview with 702 and CapeTalk anchor, Eusebius McKaiser.

[WATCH] Day-Zero for water running out fast approaching?

[WATCH] Day-Zero for water running out fast approaching?

A government employee emailed John Maytham about what he or she believes is the real state of play with the Cape water crisis.

Sasfin CEO opens up about dumping KPMG

Sasfin CEO opens up about dumping KPMG

The Money Show’s Bruce Whitfield interviews Sasfin CEO Roland Sassoon.