Cell C wants to move its entire network to rival operator MTN and essentially become a high-level mobile virtual network operator (MVNO) as part of its turnaround strategy.<\/p>\n
Chief executive officer Douglas Craigie Stevenson, shared the company\u2019s plans with the Financial Mail.<\/p>\n
Cell C is facing a challenging financial future after it recorded an after-tax net loss of R8.03 billion for the year ended 31 May 2019.<\/p>\n
Blue Label Telecoms co-CEO Brett Levy said they drew a line in the sand by writing off their entire investment in Cell C to zero.<\/p>\n
Despite this write-down, Levy remains upbeat about the mobile operator\u2019s prospects, especially with the planned recapitalisation of Cell C through an equity partner.<\/p>\n
He said that the recapitalisation will address Cell C\u2019s debt problem and help the company to become profitable.<\/p>\n
In his interview with Financial Mail<\/strong><\/a>, Craigie Stevenson said Cell C is negotiating a new roaming deal with MTN which will see it carry all of Cell C\u2019s traffic.<\/p>\n This new roaming agreement will also see Cell C hand all of its towers over to MTN, which means it will no longer run its own network.<\/p>\n This radical move means that Cell C will essentially become a high-level MVNO without its own network infrastructure.<\/p>\n This will remove the need for Cell C to invest billions in its network and allow it to use this money for operational expenses.<\/p>\n Cell C\u2019s plan to move its network requirements to MTN and become a large MVNO has been confirmed by an executive close to the negotiations who asked not to be named.<\/p>\n He said such a deal would make financial sense for MTN and Cell C and allow the smaller operator to become more sustainable.<\/p>\n Craigie Stevenson said Cell C cannot carry on with its \u201ccapital-intensive model\u201d, and that this deal with MTN would entail substituting capital expenditure for operational expenditure.<\/p>\n Since Cell C will use MTN\u2019s network to serve its customers, it would allow the company to compete \u201con the basis of having the same geographical footprint and quality of service\u201d.<\/p>\n Craigie Stevenson told the Financial Mail that the deal with MTN is expected to be finalised by the end of October.<\/p>\nCell C has a bright future \u2013 Craigie Stevenson<\/h3>\n