Cell C looking to sell contract subscribers to Vodacom

Jamie McKane

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Cell C looking to sell contract subscribers to Vodacom

Vodacom Group Ltd. is in talks with Cell C Pty Ltd. about taking on the smaller rival’s contract-paying mobile-phone customers, a move that would strengthen its position as South Africa’s telecoms market leader, according to people familiar with the matter.

The unit of the U.K.’s Vodafone Group Plc would gain just over 1 million high-paying subscribers from the deal, said the people, who asked not to be identified as the discussions are ongoing. The talks are at an early stage and could yet fall apart, they said.

[Bloomberg]
 

RandomGeek

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Selling their highest ARPU customers? That's crazy. Beginning of the end of CellC in their current form
 

chefdude98

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Bye Bye Dual Sim phones ..(I know Telkom offers these but their customer service and billing is scary)

Bye Bye Competition

Bye Bye clean unbranded phones.

Is Cellc's core business going to be prepaid?,I don't see how they will survive with only prepaid customers.

And why are they trying to off load contract customers onto Vodacom ,when they have a roaming deal with MTN?
 

chefdude98

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The only way Cellc will survive is by focusing on data,like Rain.

Cellc depends on MTN for coverage though...Cellc is done.

They should have approached a Chinese or Indian telecom company to buy them out or is our market so small,that only MTN and Vodacom can survive?
 

ToxicBunny

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You really don't strengthen your balance sheet by moving off your highest ARPU customers....

Then again, if your highest ARPU customers are costing you more than they earn you, your business to completely fscked anyway.
 

chefdude98

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The government gives zero ****s about allocating spectrum.

And Cellc made some bad business decisions. Their version of Netflix was a terrible idea.

I doubt Cellc will be around in the next 5 years.
 

Unreal

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Bye Bye Dual Sim phones ..(I know Telkom offers these but their customer service and billing is scary)

Bye Bye Competition

Bye Bye clean unbranded phones.

Is Cellc's core business going to be prepaid?,I don't see how they will survive with only prepaid customers.

And why are they trying to off load contract customers onto Vodacom ,when they have a roaming deal with MTN?
All the things you like about Cell C is what is killing their business
 

R4ziel

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Oh crap! I'm one of those customers.

Same here, I was actually excited reading this, I might actually have better signal at my house on the VC network, if all else fails this will force me to look for another provider. I've been unhappy with CellC but not to the point of replacing them yet, they did that themselves
 

Creag

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Oh crap! I'm one of those customers.
I would have been. Except I moved over to prepaid and now I cannot get VC to port me.

/sigh

To think I could have been ported without all the drama. Eish!
 

Ockie

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I would have been. Except I moved over to prepaid and now I cannot get VC to port me.

/sigh

To think I could have been ported without all the drama. Eish!


What is the reason given for not being able to port you?
 

Azg

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You really don't strengthen your balance sheet by moving off your highest ARPU customers....

Then again, if your highest ARPU customers are costing you more than they earn you, your business to completely fscked anyway.
I don't think it's because their highest ARPU customers are costing more than they bring in. From the article, Cell C is desperate for cash to pay off it's debt.
 

genetic

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Interesting.. I'm a Been a Cell C contract subscriber since 2011. Too lazy to move, but wouldn't mind VC taking over.
 

ToxicBunny

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I don't think it's because their highest ARPU customers are costing more than they bring in. From the article, Cell C is desperate for cash to pay off it's debt.

Yeah, but it doesn't seem like a wise short/medium/long term business decision....

You want to keep your high ARPU contract customers as they are a minimum guaranteed revenue stream.
 

jax_maxit

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As a former prepaid Vodacom subscriber (ditched them years ago), I am not happy about this. My Cell C contract is up for renewal this year and if this goes through, I'm out. I rooted for the newcomers who managed to shake things up a bit and forced VC and MTN to lower their prices. I have no affiliations to Cell C and know nobody who works there, but their demise saddens me.
My first ever mobile network contracts were with Cell C, and I planned to upgrade to the Note 9 or 10 later this year. Guess I will be buying one cash (during my overseas travels) and changing back to prepaid.
 
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