Cell C in talks to boost network quality

·8 Jun 2015

Cell C is in discussions to extend its roaming agreement with Vodacom, which may include more favourable terms and much better data roaming.

MyBroadband has learned from well-placed sources that the new agreement could significantly improve Cell C’s service levels.

Cell C already has a national roaming agreement in place with Vodacom, which permits voice and data roaming. However, Cell C does not currently roam on 3G except in selected areas.

It is understood that the current negotiations are aimed at extending this agreement, but this time around it may include a far more extensive data roaming footprint.

More favourable roaming terms for Cell C are also on the table. This could provide Cell C with more flexibility when it comes to roaming.

Cell C confirmed that it was in discussions with Vodacom to switch on 3G roaming. No information was given about other aspects of the negotiations.

Vodacom was asked for about the negotiations, but the company declined to comment.

Vodacom giving away its biggest selling point?

Vodacom has the best mobile network in South Africa, which is the operator’s biggest selling point to customers.

Cell C, on the other hand, has been struggling with network issues which has given it a reputation of an operator with a poor network.

While Cell C is investing billions in its network, it will take a long time before it can challenge Vodacom’s network dominance.

Considering these facts, it is not clear why Vodacom would want to expand its roaming partnership with Cell C, as it will give a competitor better access to its biggest selling point.

One theory is that Vodacom has additional capacity in some regions, and giving Cell C access to its network can generate revenue using this excess capacity.

It is also not clear if such a roaming agreement will influence Cell C’s plans to invest R8 billion in its LTE network over the next three years.

– MyBroadband