-
Join the MyBroadband community
South Africa’s biggest forum. Discuss, discover, and connect with thousands of members.
-
Question of the Day: What's the most interesting small town you've visited in South Africa?
Cell C needs data strategy to compete
- Thread starter rpm
- Start date
IIRC, Cell C has stated in the past that they are not going to focus on data all that much. Instead they have gone the route of concentrating on capturing more of the voice market, and atrracting lower LSM market spend.
IMO, their campaigns have worked to a degree, I mean almost every one I know, bought a Cell C starter pack for the Woza Weekend thing, where it back fired is that people still kept their VC and MTN numbers for during the week.
IMO, their campaigns have worked to a degree, I mean almost every one I know, bought a Cell C starter pack for the Woza Weekend thing, where it back fired is that people still kept their VC and MTN numbers for during the week.
As a former Cell C subscriber, the reason I left was because they didn't offer any 3G. I didn't really have any problems with the network, I just couldn't see myself constantly swapping sim cards so I could surf the net a bit using my cell phone.
Cell C needs to wake up to the fact that mobile phones are becoming a media convergence platform. I mean people are using them for everything from phone calls to watching video (something I will never understand). And to do all these things, people need a faster network.
Cell C needs to wake up to the fact that mobile phones are becoming a media convergence platform. I mean people are using them for everything from phone calls to watching video (something I will never understand). And to do all these things, people need a faster network.
Last edited:
AirWolf
Honorary Master
IMO Saudi Oger needs to step up to the plate and get Cell C out of debt.
Then quick advancement on the data side - don't start at the bottom - go straight for 7.2 Mbps HSDPA. That will go some way in splitting the mobile data market 3 ways.
When coming up with these ideas I have the comfort of not being in their CFO's shoes
.
Then quick advancement on the data side - don't start at the bottom - go straight for 7.2 Mbps HSDPA. That will go some way in splitting the mobile data market 3 ways.
When coming up with these ideas I have the comfort of not being in their CFO's shoes
.pkid
Expert Member
Come on man. Didn't Cell C say that they don't see any value in high speed mobile data? They are concentrating on people who load R10 airtime during the week so they can call over the weekends? There are different subscribers with different needs and I am all for the Woza Weekend promotion that helps out poorer people. It is cool. I don't think that this should be their only strategy because I doubt it will make them oodles on money. So I would say keep the weekend special but also start rolling out high speed mobile data. I have spent R380 this month on data bundles with Vodacom...
AirWolf
Honorary Master
Only problem with that is the free users would hog the network resulting in less than desirable service being experienced by data users.
pkid
Expert Member
Hopefully a lot of the free users would be on GSM and so not hog the HSDPA towers?
AirWolf
Honorary Master
pkid
Expert Member
ic, comments on this please?
What was wrong with what I said? I thought that HSDPA and GSM used different towers? Maybe they use the same backhaul lines because they might share sites but I can't imagine that it takes much bandwidth to provide voice compared to data. The fact that it takes a relatively small amount of money to qualify for the weekend free calls led me to believe that there might be a lot of poorer people who do not have 3G phones because they can't afford contracts or to pay cash for them. The GSM phones would use the GSM network rather than the 3G one. This led me to believe that there might be a bit of breathing space for a newer 3G network over the weekends and that it could perhaps voice and data users could co-exist.
Hey I might be wrong...
One of my reasons for ditching CellC, was & is that CellC doesn't have a 3G network and CellC stated that it had no intention of rolling out a 3G network.What was wrong with what I said? I thought that HSDPA and GSM used different towers? Maybe they use the same backhaul lines because they might share sites but I can't imagine that it takes much bandwidth to provide voice compared to data. The fact that it takes a relatively small amount of money to qualify for the weekend free calls led me to believe that there might be a lot of poorer people who do not have 3G phones because they can't afford contracts or to pay cash for them. The GSM phones would use the GSM network rather than the 3G one. This led me to believe that there might be a bit of breathing space for a newer 3G network over the weekends and that it could perhaps voice and data users could co-exist.ic, comments on this please?
Hey I might be wrong...
It would cost CellC billions to roll out a 3G network capable of competing with both Vodacom's & MTN's 3G networks. CellC is cash-strapped and vulnerable to being taken over [provided that the Competition Commission & Competition Tribunal allow it].
If CellC does want to invest in something worthwhile, it should forget about 3G and instead wait for LTE|4G, but invest heavily now in self-provisioning its own fibre optic links, i.e. CellC should free itself from Telkodemonopolies - it's what Vodacom and MTN are concentrating on, CellC should run the numbers and see that it really does make sense. Also, for CellC to concentrate on data services now, prior to the arrival of SEACOM and EASSy i.e. being hamstrung by SAT-3 pricing, when CellC lags so far behind both Vodacom and MTN, would be a big mistake [IMO].
Basically CellC has missed the boat where data is concerned, sure it has EDGE, but that only serves to overload 2.75G base-stations which are still limited by timeslots.
Self-provision fibre optic links now - lots of spare bandwidth, and wait for LTE|4G, then attempt to leapfrog in front of both Vodacom and MTN.
Last edited:
pkid
Expert Member
KampfGherkin
Well-Known Member
Judging from the timetable that one can expect for LTE/4G to take for its first rollouts around the globe, which is expected to happen before 2010 (from what I can tell with some quick Google searches - though a good portion of salt should be taken), there is potential opportunity knocking for Cell C.
And with SEACOM to boost bandwidth supply into SA by a factor of 11 or so by the middle of next year, there really could be a case for building and developing backhaul capacity too and from there tackle the construction of a next-gen mobile network based on LTE/4G.
But being able to do something versus being able to actually afford it are two very different things. With a profit of R 321M there's no chance of them wishing to invest in a venture of R3B or so for the remainder of 2008. Positive returns on such an investment would probably only come in after another grueling 3-5 years. That's just not on the books for a company that has taken five operating years to go from the red to the black to begin with.
I think Cell C is stuck between a hard place and a rock, more than saying there's a lack of strategy. Though saying that is not wrong either. But I think it's mostly caused due to a lack of cash (which I suppose would lead back to a lack of strategy and execution, but alas), where MTN and Vodacom have both been able to out-vest Cell C by building 3G networks and backhaul capacity (costing billions), wherein they've excellently positioned themselves to expand their respective businesses further. Their mobile customer base is also nearly maxed out (the two have somewhere around 35-40M users they can call their own, from a population of close to 50M in SA - Cell C's 3.5M are peanuts to that).
At present Cell C doesn't have many options without the cash required to expand into new technology markets. But now, since they are actually profitable, perhaps they can make 2008 the year where they shovel cash, since their liabilities will now be well under control and well reduced.
Maybe they'll hit a billion bucks in profit by 2Q 2009? That would certainly kindle investor potential by then, so who knows. We'll see if their reliance on the lower income market and skipping 3G is gonna be the big payoff. A competing network based on 4G would certainly be painful for MTN/Vodacom to bear, since 3G is only really paying off dividends to them for the last year or so. Heck, maybe Cell C can turn things around afterall...
Last edited:
If CellC does decide to rollout a 4G network, with the necessary backhaul capacity, it might still be a tough sell considering that HSPA modems and in general HSPA handsets are interchangeable between the Vodacom and MTN HSPA networks. CellC could be the only network operator with what could otherwise be considered proprietary hardware that [at the time] would not work on any other network, thus making it a tough sell - especially considering that modem & handset pricing is likely to be high initially - CellC does not have the same bulk buying power that Vodafone has, and to a lesser extent that the MTN Group has.