Cell C may oppose MTN, Telkom roaming deal

11 Sep 2014

South African wireless operator Cell C, the country’s third largest cellco by subscribers, has revealed that it might oppose the proposed mobile network sharing deal between larger rivals Telkom and MTN South Africa, TechCentral reports. CEO Jose Dos Santos reportedly said: ‘Cell C has been asked to comment on the proposed transaction by the Competition Commission (CompCom) … on the face of it, and as Cell C understands the proposed transaction, we do not agree with it.’ However, the executive noted that his company has not been provided with much in the way of detail by the competition regulator, and once additional information has been obtained, he will be in a better position to comment.

As previously reported by TeleGeography’s CommsUpdate, in March 2014 Telkom signed an agreement with rival MTN, under which the latter will take over the deployment and operation of Telkom’s radio access network (RAN), although both companies will ‘retain and enhance [their] competitive differentiation and flexibility’. However, if the deal gets approval from the relevant authorities, MTN will not get access to Telkom’s 4G Long Term Evolution (LTE)-suitable spectrum in the 2.3GHz band, as the negotiations between the two companies specifically excluded the LTE band.

South Africa, Cell C, MTN South Africa, Telkom South Africa