TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentralTechCentral
    NEWSLETTER
    • News

      South Africa’s ‘silent revolution’ as those with cash go solar

      15 August 2022

      SA coal giant Seriti Resources in pivot to renewables

      15 August 2022

      Tencent, TikTok share details of prized algorithms with Beijing

      15 August 2022

      Fixing SA’s power crisis is not complex: it simply takes the will to do better

      12 August 2022

      Consortium makes unsolicited bid for state’s 40% stake in Telkom

      12 August 2022
    • World

      Institutions eye crypto but retail investors remain nervous

      15 August 2022

      Tencent woes mount, even after $560-billion selloff

      12 August 2022

      Huawei just booked its first sales rise since US blacklisting

      12 August 2022

      Apple remains upbeat about iPhone sales even as Android world suffers

      12 August 2022

      Ether at two-month high as upgrade to blockchain passes major test

      12 August 2022
    • In-depth

      African unicorn Flutterwave battles fires on multiple fronts

      11 August 2022

      The length of Earth’s days has been increasing – and no one knows why

      7 August 2022

      As Facebook fades, the Mad Men of advertising stage a comeback

      2 August 2022

      Crypto breaks the rules. That’s the point

      27 July 2022

      E-mail scams are getting chillingly personal

      17 July 2022
    • Podcasts

      Qush on infosec: why prevention is always better than cure

      11 August 2022

      e4’s Adri Führi on encouraging more women into tech careers

      10 August 2022

      How South Africa can woo more women into tech

      4 August 2022

      Book and check-in via WhatsApp? FlySafair is on it

      28 July 2022

      Interview: Why Dell’s next-gen PowerEdge servers change the game

      28 July 2022
    • Opinion

      No reason South Africa should have a shortage of electricity: Ramaphosa

      11 July 2022

      Ntshavheni’s bias against the private sector

      8 July 2022

      South Africa can no longer rely on Eskom alone

      4 July 2022

      Has South Africa’s advertising industry lost its way?

      21 June 2022

      Rob Lith: What Icasa’s spectrum auction means for SA companies

      13 June 2022
    • Company Hubs
      • 1-grid
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»News»Cell C in talks to sell post-paid subscribers to Vodacom

    Cell C in talks to sell post-paid subscribers to Vodacom

    News By Loni Prinsloo14 January 2020
    Facebook Twitter LinkedIn WhatsApp Telegram Email

    Vodacom is in talks with Cell C about taking on the smaller rival’s contract-paying mobile phone customers, a move that would strengthen its position as South Africa’s telecommunications market leader, according to people familiar with the matter.

    Vodacom would gain just over a million high-paying subscribers from the deal, said the people, who asked not to be identified as the discussions are ongoing. The talks are at an early stage and could yet fall apart, they said.

    Cell C and its biggest shareholder, Blue Label Telecoms, are looking at ways to cut costs and strengthen the balance sheet as they battle to service R9-billion of debt. Transferring the customers to Vodacom would attract a fee and free Cell C from the cost of servicing clients, including handset subsidies and credit checks, said the people. The carrier could also cut jobs and close some stores after slimming down operations, they said.

    Cell C generated about R3.6-billion in revenue from its post-paid customers in the year to May, about 30% of sales from mobile phone subscribers

    Representatives for Vodacom and Blue Label declined to comment. A spokeswoman for Cell C said the carrier doesn’t respond to speculation.

    Cell C generated about R3.6-billion in revenue from its post-paid customers in the year to May, about 30% of sales from mobile phone subscribers. The company will be left with those who pay as they go, who don’t spend as much on average as those with contracts. The resulting smaller business would also include Cell C’s broadband customers.

    Vodacom has about 5.8 million post-paid subscribers in South Africa, meaning a successful deal would see it leapfrog MTN with 5.9 million and increase its overall lead in the market.

    In November, Cell C rejected a takeover offer from Telkom that would have combined South Africa’s third- and fourth-largest mobile phone companies. It remains in negotiations with a local investment firm called Buffett Group, which could trigger its second recapitalisation deal in four years.  — (c) 2020 Bloomberg LP

    Blue Label Telecoms Buffet Consortium Cell C MTN MTN South Africa Telkom top Vodacom
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleMassmart downsizing was expected
    Next Article Google’s move to drop cookies pushes advertising into new era

    Related Posts

    South Africa’s ‘silent revolution’ as those with cash go solar

    15 August 2022

    SA coal giant Seriti Resources in pivot to renewables

    15 August 2022

    Tencent, TikTok share details of prized algorithms with Beijing

    15 August 2022
    Add A Comment

    Comments are closed.

    Promoted

    Seven reasons your business needs IP surveillance cameras

    15 August 2022

    5G your life for faster, more reliable home or mobile connectivity

    15 August 2022

    World’s fastest compact firewall for hyperscale data centres, 5G networks

    15 August 2022
    Opinion

    No reason South Africa should have a shortage of electricity: Ramaphosa

    11 July 2022

    Ntshavheni’s bias against the private sector

    8 July 2022

    South Africa can no longer rely on Eskom alone

    4 July 2022

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2022 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.