MTN, Cell C sign new deal

Cell C’s expanded roaming agreement with MTN South Africa, which was signed at the weekend after months of negotiation, “adheres to all applicable legal and regulatory requirements”, the companies said.

This statement by the parties appears designed to head off a potential challenge by rivals who may seek to derail the agreement through regulatory or court processes.

“Cell C and MTN will maintain their spectrum and each party will use its own frequencies,” Cell C said shortly after MTN announced the finalisation of the deal yesterday.

“Cell C will still have all of its licences and control its core network, transmission, billing system and subscriber management,” it said. However, management of the radio access network (base stations proving access to consumers) will be provided by MTN nationally.

The companies said the new roaming and services agreement will allow for network innovation and will promote efficient network infrastructure utilisation and sustainable investment in infrastructure.

“In 2018, Cell C and MTN entered into an initial roaming agreement that provided 3G and 4G services in areas outside the main metros. The expanded roaming agreement extends this coverage and gives nationwide roaming to the benefit of Cell C subscribers,” Cell C said.

“This roaming agreement will see Cell C’s 4G network coverage extended to 95% of the population. Cell C customers will have access to over 12 500 sites, of which 90% are LTE enabled.”

Cell C chief executive Douglas Craigie Stevenson said it is a pivotal step in Cell C’s turnaround strategy. One of the key pillars is to implement a revised network strategy that enables it to manage its network requirements more cost efficient.

Cell C said the agreement is “in line with shifts in the global telecommunications industry toward more cost-effective network strategies that drive down costs and deliver greater operational efficiencies that ultimately benefit consumers”.

“There are already local examples of this type of roaming agreement in South Africa,” the company said, in probably reference to an arrangement between Vodacom and Rain.

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