ICASA confirms Cell C’s recapitalisation is compliant with regulation

4 Dec 2017

South African regulator the Independent Communications Authority of South Africa (ICASA) has confirmed that wireless operator Cell C ‘followed the correct process in the notification of its recapitalisation transaction and that it had complied with all applicable regulations’, according to a Cell C press release. Company CEO Jose Dos Santos said: ‘A recapitalised Cell C is good for the industry, the economy, and the consumer at large. The successful conclusion of this transaction has ensured a sustainable future for the company and its employees. We now have a solid foundation to really drive competition in an industry that has been marred by a duopoly at the expense of the consumer.’

As previously reported by TeleGeography’s CommsUpdate, Cell C concluded its recapitalisation – which increased the ownership of South African shareholders from 25% to 86% – in August 2017, with South Africa’s airtime provider Blue Label now holding 45% of Cell C, while 3C Telecommunications – itself owned by Oger Telecom 45.6%, the Employee Believe Trust 29.4%, and broad-based black empowerment (BBBE) grouping CellSAf 25% – is in charge of 30%, Net1 (15%) and Cell C management and staff (10%). In September 2017 ICASA launched an investigation into the process, after revealing that its preliminary view was that ‘the Cell C recapitalisation transaction – on the face of it – triggers the provisions of Section 13 of the Electronic Communications Act of 2015 and ought to have been filed as an application for change of control of the licensee.’

South Africa, Cell C, Independent Communications Authority South Africa (ICASA), Oger Telecom