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Cell C subscribers base up by 58% (South Africa)

  • August 22nd, 2008
  • 1:49 pm

Cell C, South Africa’s third mobile operator posted half-year results showing active subscriber figures up 58% from June 2007 to 5.4 million, indicating Cell C is taking market share from its rivals MTN and Vodacom.  The company said that the increase has been largely driven by demand for products such as Woza Weekend which provides subscribers with free call minutes on weekends, and the Hola 7 starter pack, which costs less than USD1.3. CEO Jeffrey Hedberg said that ‘Our new core network has enabled us to effectively manage this increase in our customer base. Had we not migrated to the new core network technology, we would have had to build a network three times its current size’.

Company reported that EBITDA was USD66.97 million. The operator’s total revenue has increased 17% year-on-year to ZAR590 million, while operating profit increased 36% compared to the first half of 2007. Seven years after its launch the company has yet to make  net profit.

South Africa’s Mobile Market Profile

  • August 13th, 2008
  • 10:39 am

South Africa has a vibrant mobile market that has seen rapid uptake since competition was introduced to the sector more than ten years ago. With market penetration approaching 90% and number portability introduced in 2006, three network operators are increasingly forced to find innovative ways of distinguishing themselves from the competition in order to gain and retain customers. 3G/HSDPA mobile data services now rival available DSL fixed-line offerings in terms of both speed and price, and consequently subscriber numbers.

Notable highlights of the 3Q08 South Africa Mobile Forecast includes:

  • The number of total subscribers in South Africa will increase from 49 million in 2008 to 55.3 million in 2010. This change results in a rise in the wireless penetration level from 102% in 2008 to 111.9% in 2010.
  • The largest operator, Vodacom, will be losing its market share (by subscribers) to its competitors over the next few years. According to our model, Vodacom’s market share will decrease from 54.2% in 2008 to 52.4% in 2010. On the other hand, MTN’s market share will increase from 33.7% to 34.2% and that of Cell C will increase from 11.8% to 12.5% over the same forecast period from 2008 to 2010.
  • Given 1Q.2008 results, we are revising our ARPU forecasts. In 2010, Vodacome will earn the highest ARPU at US$ 18.15 per month among the three operators. Cell C will receive the lowest ARPU at US$ 14.88 per month.
  • However, it is MTN that will enjoy the highest EBITDA margin at 37.8% in 2010 among the three operators. It is expected Vodacom’s EBITDA margin to be at 36.4% in 2010.

Zain interested in SA licence (South Africa)

  • June 9th, 2008
  • 3:05 pm

Kuwait’s Zain Group has said it is eyeing a mobile licence which could become available in South Africa next year. The country already has three established operators – Vodacom, MTN and Cell-C – who were sharing almost 45.4 million subscribers at the end of March 2008. A report from Reuters cites Zain Africa’s CEO Chris Gabriel, who says: ‘We are interested in the South African market and we heard reports about a fourth mobile licence coming up.’ He adds: ‘If there is an opportunity we will definitely consider it.’ Last month, Khotso Khumalo, the chairman of the country’s parliamentary portfolio committee, told journalists at a media briefing that the government will license a fourth mobile operator and a third fixed line operator in 2009 though no further details have been revealed.

   

 

Cell C profits climb(South Africa)

  • August 8th, 2007
  • 3:10 pm

South African mobile operator Cell C has reported a positive set of financial results for the first half of 2007. For the six months to the end of June the firm posted revenues of ZAR3.6 billion, up 18% year-on-year, while EBITDA rose 36% to ZAR346 million. Cell C is the smallest of the country’s three mobile operators, with 3.4 million users at the end of June.

   

 

MTN accused of price discrimination against Cell C

  • August 1st, 2007
  • 2:37 pm

South Africa’s Competition Commission has referred a complaint from mobile operator Cell C accusing rival MTN of price discrimination to the Competition Tribunal. Cell C’s complaint is over the interconnection fees charged by MTN for calls from Cell C Community Service Telephones (CSTs). South African operators are required to roll out CST services for collective use in under-served areas and charge lower interconnection rates for the services. According to Cell C, MTN has charged it a commercial interconnection rate while giving rival Vodacom the discounted rate. MTN had objected to the placement of CSTs by Cell C, alleging that Cell C had rolled out CSTs in areas which did not fall within the ambit of under-serviced areas. As a result, MTN is charging Cell C the commercial interconnection rate of ZAR 1.25 per minute during peak periods and ZAR 0.77 per minute during off-peak periods, and not the CST interconnection rate of ZAR 0.06 per minute. The Commission found that the conduct of MTN of charging Cell C the commercial interconnection rate in the same areas that it charges Vodacom CST rates amounts to price discrimination.

   

Virgin passes 100,000 milestone In South Africa

  • May 15th, 2007
  • 6:09 am

South African mobile virtual network operator (MVNO) Virgin Mobile has signed up 100,000 customers in less than a year of commercial operation. Business Day quotes company CEO Peter Boyd who says that Virgin Mobile is on track to meet its initial targets. Virgin Mobile operates under a network sharing deal with South Africa’s third largest cellular operator, Cell-C; it is owned jointly by Cell-C and the UK-based Virgin Group.