Promising signs at Cell C

Cell C CEO Jorge Mendes says the mobile operator’s partnership plans are paying off, with it partnering with 40 other firms, including hardware and software service providers, to provide end-to-end products and services to corporate and state clients.

The Sunday Times reports that the mobile operator will also spend around R1 billion on upgrading its technology systems.

Referring to the mobile operator’s partnerships, Mendes said the company wants to offer a complete solution and cover whatever services its clients require.

“We are seeing very strong improvements off a low base. You know, we didn’t have any of the focus on this before. We’re now starting to participate in some of these revenue streams,” Sunday Times quoted Mendes as saying.

He added that several commercial negotiations are at an advanced stage and that Cell C has landed some business.

“We’ve gained some customers, we’ve gained some revenue, and we want to continue to drive that, because we think that partnership model is a good one,” said Mendes.

Cell C chief technology officer Schalk Visser said the company’s shift to a virtualised network has enabled the company to progress faster, innovate smarter, and focus on giving customers a reliable, quality connection.

Currently, Cell C leverages MTN’s network for its prepaid customers, while Vodacom’s infrastructure provides connectivity to its contract customers.

Contract customers are currently managed by Blue Label Telecoms’ Comm Equipment Company (CEC).

There was widespread speculation that Cell C had sold its contract and broadband subscriber base to Vodacom in a secret deal that involved CEC.

However, Blue Label and Cell C denied that the subscriber base was sold. Blue Label explained it structured a complex deal to move the risk of Cell C’s contract subscribers to CEC and avoid winding up the business.

Blue Label recently announced another complex plan for Cell C to acquire CEC as part of a larger restructuring that also paves the way to list the mobile network operator separately.

“It’s not about who owns the towers. It’s about how well the network performs in the moments that matter to our users,” said Visser.

Mendes told MyBroadband in November 2023 that the company wanted to take back control of its postpaid services.

Restructuring and a potential JSE listing

In mid-May 2025, Blue Label Telecoms announced a restructuring enabling Cell C to retake control of its contract subscriber base.

In a Johannesburg Stock Exchange (JSE) News Service announcement, Blue Label revealed plans to restructure so that Cell C can formally acquire CEC.

According to the parent company, the restructuring will prepare Cell C for a potential future listing on the JSE.

The key components of the proposed restructuring include:

• Airtime asset transfer: The Prepaid Company (TPC), the wholly owned subsidiary of Blue Label that holds shares and debt claims in Cell C, will transfer Cell C airtime currently held by TPC on its balance sheet to Cell C in exchange for newly issued additional equity in Cell C.
• Debt-to-equity conversion: TPC’s outstanding debt claims against Cell C will be capitalised and converted into equity, further reducing Cell C’s leverage.
• Acquisition of Comm Equipment Company: Cell C will acquire 100% of CEC from TPC in exchange for additional Cell C shares.
• SPV restructure: The Special Purpose Vehicles (SPVs) currently holding equity interests in Cell C will also be restructured as part of the broader initiative, aligning their ownership structures with the redefined capital framework.

Blue Label said the restructuring is intended to streamline operations, improve financial sustainability, and enhance Cell C’s strategic readiness for long-term growth and its potential listing.

“The internalisation will enable Cell C to assume full responsibility over its postpaid customer base, including oversight of supply chain, commercial operations, marketing, billing, credit, and collections,” it added.