Why Cell C is shutting down fixed-LTE

Cell C has said the recent termination of its fixed-LTE products was not influenced by its financial situation.

The company announced that it would discontinue its fixed-LTE service which it offered through Internet Solutions and local ISPs, stating that it was no longer feasible to operate in the wholesale fixed-LTE sector.

“Cell C is in the process of reviewing its full product portfolio and this specific agreement was done nearly 24 months ago,” the company told MyBroadband. “Over this period, the competitive landscape has changed substantially.”

“The decision to terminate this contract was not taken lightly and followed after several months of negotiations,” Cell C said.

“The Internet service provider was given the required 3 months’ notice. The decision has been made based on sound business principles and is in no way linked to Cell C’s debt.”

Hurting network quality

Cell C noted that its fixed-LTE service was no longer profitable, and the load placed on the network by fixed-LTE users was affecting network quality for other Cell C customers.

“The provision of the service was no longer profitable for Cell C and while another competitor may be willing to offer at a similar or lower price, Cell C does not believe it is sustainable,” the company said.

“In short, via the Internet service providers less than 0.5% of Cell C’s total customer base were using 20% of Cell C’s data network capacity. This was having an impact on the quality of the network for all other Cell C customers,” Cell C said.

The operator said it is following a strategic roadmap aimed at optimising its business and simplifying its structure, and it noted that fixed-LTE customers have alternative options such as Cell C C-Fibre and ADSL.

Now read: Cell C terminating fixed-LTE services

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Why Cell C is shutting down fixed-LTE