South African cellular operator Cell C has begun transferring its prospects, beginning with contract and broadband prospects, on to rival Vodacom’s community because it prepares to decommission its towers as a part of a roaming community technique.
To remain aggressive and strengthen its stability sheet because it battles to service its debt, Cell C has needed to take a unique method than its giant rivals who’re all closely invested in capital-intensive infrastructure.
The plan is to collaborate on infrastructure however compete on services and products below the Cell C model.
“This creates extra flexibility and capability to ship the proper high quality of service to our present and future prospects,” Cell C CEO Douglas Craigie Stevenson mentioned.
Vodacom, South Africa’s second largest telecom service supplier by subscribers, will get a monetary enhance from the roaming income, which may in flip be used for additional community rollout.
The transition of Cell C’s contract and broadband prospects is because of be accomplished within the subsequent two months, whereas the phased transition of pay as you go prospects will likely be confirmed in the end, the nation’s fourth largest provider mentioned.
“The migration of contract and broadband prospects arises from Cell C’s community roaming settlement with Vodacom,” the agency mentioned in an emailed response.
Cell C, by which telecoms agency Blue Label owns a 45% stake, in November expanded its roaming settlement with MTN , the nation’s largest cellular community operator, enabling it to roam on MTN’s community in all areas of the nation.
“We’re transferring nearer to our imaginative and prescient that gives prospects high quality community entry,” mentioned Craigie Stevenson.
“Operationally the enterprise is getting stronger, and a profitable recapitalisation will safe the long-term sustainability of Cell C.”