MTN's roaming deal with Cell C faces scrutiny

Jan

Drifting in the black
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Well that was inevitable.

Cell C can't complain about the Vodacom/Rain deal, and go to the Competition Commission over the MTN/Telkom deal and expect to get a free pass.

Great article, @rpm.
 

Rickster

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I thought CellC was broke...how can they afford to do this?
 

rpm

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I thought CellC was broke...how can they afford to do this?
Cell C will benefit from it because they will not have to invest in a radio network. They will therefore significantly cut CAPEX, which is a large expense for telecoms network operators.

This is most likely their only option. They do not have money to spend on network investments, but unless you invest you fall behind the big players. If you can't beat them, join them :)
 

Rickster

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Cell C will benefit from it because they will not have to invest in a radio network. They will therefore significantly cut CAPEX, which is a large expense for telecoms network operators.

This is most likely their only option. They do not have money to spend on network investments, but unless you invest you fall behind the big players. If you can't beat them, join them :)

So im guessing MTN said pay us back at a later stage when you get cash flowing in once on our towers?
 

rpm

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So im guessing MTN said pay us back at a later stage when you get cash flowing in once on our towers?
It is more like a roaming agreement. Cell C pays to roam on MTN's network. It has been struggling to make payments because of its financial situations, but that does not really influence the business model.
 
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