Speaking at Cell C\u2019s recent results presentation the company\u2019s CEO, Jeffrey Hedberg, said that while they have a 3G ready core network, \u20183G is hype and we won\u2019t fall prey to hype\u2019.<\/p>\n
Hedberg said that Cell C can not justify investing money into something [3G\/HSDPA] that does not offer a good return on investment. Hedberg noted that Cell C needed to evolve their data and broadband strategy, but it won\u2019t invest billions into a 3G network just to say that they have 3G.<\/p>\n
Cell C Chief Financial Officer Fabrizio Mambrini added that 3G is becoming an obsolete technology with overseas operators already talking about 4G.<\/p>\n
Cell C currently has around 600 000 data users on their network according to the company\u2019s latest figures. These customers are served by Cell C\u2019s extensive GPRS\/EDGE network which promises speeds of up to 244 Kbps.<\/p>\n
Despite Hedberg\u2019s insistence that a 3G\/HSDPA network is not a sound investment, both Vodacom and MTN are experiencing significant growth in their data revenue and broadband subscriber numbers.<\/p>\n
An extensive mobile broadband network has the added advantage of attracting traditional voice customers to the network.<\/p>\n
Some Cell C customers have already indicated that they have moved to Vodacom or MTN because of their HSDPA service offerings, a trend which may cost Cell C and Virgin Mobile many subscribers in the high-end market.<\/p>\n