Telkom desperately wants Cell C (despite its flirtation with MTN)
Telkom’s share price lost more than 5% on Monday when Cell C and MTN announced their new roaming agreement.
The agreement may complicate its plans to buy Cell C.
The agreement means Cell C will roam entirely on MTN’s network, without MTN acquiring any Cell C spectrum or infrastructure.
It also means that Cell C customers will be able to use MTN's massive network at Cell C's far cheaper prices.
The network is going to be managed by MTN… allowing Cell C to reduce its capital expenditure… Since 2001, it’s been in a losing race against MTN and Vodacom, trying to keep up with investments in network infrastructure. It’s been impossible… This will free them up… to focus on customer service…Duncan McLeod, Editor - TechCentral
Sipho Maseko [Telkom CEO] is not going to let this one go… They are desperate for this deal. Telecommunications is a scale game… They find it increasingly difficult to compete with Vodacom and MTN… It complicates things for Telkom…Duncan McLeod, Editor - TechCentral
Listen to the interview in the audio below (and scroll down for more quotes from it).
Cell C is going to become a super ‘Mobile Virtual Network Operator’, similar to Virgin Mobile…Duncan McLeod, Editor - TechCentral
Blue Label is sitting in a powerful position… you’ve got two companies that are very keen on Cell C’s business…Duncan McLeod, Editor - TechCentral
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