Cellular14.11.2024

Inside story of Cell C network performance boost

A network parity programme with MTN has allowed Cell C’s data network performance to equal and even exceed that of its wholesale radio access partner in some places.

This is according to Cell C CEO Jorge Mendes, who was responding to questions about their performance improvements at a recent media event.

MyBroadband Insights data confirms that Cell C’s mobile data network quality has improved dramatically in the past year.

The Q3 2024 MyBroadband Insights Mobile Network Quality Report shows that MTN still has the best mobile network in South Africa — which Cell C has benefited from.

Cell C no longer operates its own radio access network infrastructure, instead buying wholesale services from MTN and Vodacom.

The virtual radio access network (RAN) provided by MTN generally serves Cell C’s prepaid and MVNO customers, while its Vodacom roaming deal supports its postpaid subscribers.

MyBroadband Insights found that, during the last quarter, Cell C’s average download speed increased from 54.50 Mbps to 68.12 Mbps.

The report is based on 296,277 speed tests performed by 6,989 mobile data users across South Africa between 1 July 2024 and 30 September 2024.

The testing included data from crowdsourced users and dedicated drive tests, ensuring a balanced and accurate representation of real-world network performance.

As part of the drive tests, MyBroadband Insights covered 13,000 km and performed testing in South Africa’s major cities.

The drive tests used smartphones that support the latest technologies, as well as mid-range smartphones that replicate the experience of most users.

MyBroadband also recently tested the mobile LTE speeds of South Africa’s cellular network operators at various malls around Gauteng.

Cell C outperformed MTN at Brooklyn Mall, Menlyn Mall, Centurion Mall, Eastgate Mall, and Sandton City.

On top of that, Cell C recorded the fastest average overall performance at Menlyn, Centurion, Eastgate, and Sandton City.

It also had the fastest average download speed outside MTN’s headquarters in Johannesburg when we conducted tests there in October.

Asked what had changed to allow Cell C to outperform the operator that was building its virtual RAN, Mendes explained that they had a parity programme that finished on 11 July.

“That was a rollout where MTN had to invest some capex and unlock some software around the country on network equipment from multiple vendors,” said Mendes.

“So, it was a phased approach that they had to follow,” he said.

Cell C negotiated with MTN to compress the rollout to finish sooner, as it was initially scheduled to complete in December.

In addition to the parity programme, Mendes said that Cell C had renegotiated their agreements with Vodacom and MTN.

Mendes said they secured a 5-year deal with Vodacom and a 9-year deal with MTN — both on much more favourable terms than before.

The MTN deal went into effect on 1 January, and the Vodacom deal went into effect on 1 April.

These new agreements covered aspects like quality of service, spectrum usage, pricing, data allocations (measured in petabytes), annual price escalations, and anticipated traffic growth.

Mendes described the renegotiated agreements as “really, really good deals” that established sustainable contracts, ensuring the company’s viability for at least the next five to nine years.

As part of Cell C’s financial turnaround plan, the operator abandoned notions that it could build a radio access network to rival Vodacom and MTN.

South Africa’s two largest mobile operators each pump roughly R10 billion into their South African networks every year.

Mendes said for anyone to compete, they would have to invest at least R35–R40 billion and an additional R8–R10 billion annually.

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