MTN and Cell C in sharing deal?

MTN and Cell C are believed to be in discussions over a possible infrastructure sharing deal, a well placed industry source has told MyBroadband.

The deal is understood be similar to the proposed deal between Telkom and MTN, the talks of which are still ongoing, but nearing conclusion.

MTN signed an agreement with Telkom in March 2014 which would see it take over financial and operational responsibility for the rollout and operation of Telkom’s radio access network (RAN).

A deal between Cell C and MTN would enable the former to expand its mobile coverage while also reducing its operating costs and capital expenditure.

Questions have been raised about the quality of Cell C’s network in the past, while the group has a far smaller capex budget than its rivals.

When questioned over a potential deal, Eben Albertyn, chief technical officer, MTN SA, said: “MTN continues to look for value-enhancing opportunities, including M&A, as part of its long-term growth strategy. However, we don’t comment on market speculation.”

Cell C did not reply to questions by the time of publication.

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MTN and Cell C in sharing deal?