Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

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

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Chinese car makers flood South Africa while factories lag - Mikel Mabasa

      Chinese car makers flood South Africa while factories lag

      28 January 2026
      Reports of the smartphone's impending death are greatly exaggerated

      Reports of the smartphone’s impending death are greatly exaggerated

      28 January 2026
      Popia is strong, Paia needs reform, says Information Regulator - Mukelani Dimba

      Popia is strong, Paia needs reform, says Information Regulator

      28 January 2026
      AI replaces people as Amazon cuts 16 000 corporate jobs

      AI replaces people as Amazon cuts 16 000 corporate jobs

      28 January 2026
      iCAUR to launch in South Africa with 20-dealer network - iCAUR V23

      iCAUR to launch in South Africa with 20-dealer network

      28 January 2026
    • World
      SpaceX IPO may be largest in history

      SpaceX IPO may be largest in history

      28 January 2026
      Nvidia throws AI at the weather

      Nvidia throws AI at weather forecasting

      27 January 2026
      Debate erupts over value of in-flight Wi-Fi

      Debate erupts over value of in-flight Wi-Fi

      26 January 2026
      Intel takes another hit - Intel CEO Lip-Bu Tan. Laure Andrillon/Reuters

      Intel takes another hit

      23 January 2026
      ByteDance clinches US TikTok deal

      ByteDance clinches US TikTok deal

      23 January 2026
    • In-depth
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
      TechCentral's South African Newsmakers of 2025

      TechCentral’s South African Newsmakers of 2025

      18 December 2025
      Black Friday goes digital in South Africa as online spending surges to record high

      Black Friday goes digital in South Africa as online spending surges to record high

      4 December 2025
    • TCS
      Watts & Wheels S1E2: 'China attacks, BMW digs in, Toyota's sublime supercar'

      Watts & Wheels S1E2: ‘China attacks, BMW digs in, Toyota’s sublime supercar’

      23 January 2026

      TCS+ | Why cybersecurity is becoming a competitive advantage for SA businesses

      20 January 2026
      Watts & Wheels S1E2: 'China attacks, BMW digs in, Toyota's sublime supercar'

      Watts & Wheels: S1E1 – ‘William, Prince of Wheels’

      8 January 2026
      TCS+ | Africa's digital transformation - unlocking AI through cloud and culture - Cliff de Wit Accelera Digital Group

      TCS+ | Cloud without culture won’t deliver AI: Accelera’s Cliff de Wit

      12 December 2025
      TCS+ | How Cloud on Demand helps partners thrive in the AWS ecosystem - Odwa Ndyaluvane and Xenia Rhode

      TCS+ | How Cloud On Demand helps partners thrive in the AWS ecosystem

      4 December 2025
    • Opinion
      Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

      Why Elon Musk’s Starlink is a ‘hard no’ for me

      26 January 2026
      South Africa's new fibre broadband battle - Duncan McLeod

      South Africa’s new fibre broadband battle

      20 January 2026
      AI moves from pilots to production in South African companies - Nazia Pillay SAP

      AI moves from pilots to production in South African companies

      20 January 2026
      South Africa's new fibre broadband battle - Duncan McLeod

      ANC’s attack on Solly Malatsi shows how BEE dogma trumps economic reality

      14 December 2025
      South Africa's new fibre broadband battle - Duncan McLeod

      Netflix, Warner Bros deal raises fresh headaches for MultiChoice

      5 December 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Cell C wants MTN, Vodacom high spenders

    Cell C wants MTN, Vodacom high spenders

    By Duncan McLeod2 October 2012
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Alan Knott-Craig

    Cell C CEO Alan Knott-Craig has vowed to go after the high-spending customers of rivals MTN and Vodacom and the smaller operator’s recent deal with Discovery Vitality and recent cuts in its international tariffs represent first steps in that plan.

    “We absolutely have to attack the Vodacom and MTN base at the top, and I don’t use the word ‘attack’ lightly,” says Knott-Craig, who was speaking to TechCentral in an interview on Tuesday. “We cannot pussyfoot around this thing. We have to get to the high-spending customers.”

    Cell C has about 500 000 post-paid customers — a segment that spends more on their cellular communication needs than prepaid users — and Knott-Craig has vowed to grow that number.

    One of the reasons he says Cell C recently slashed the cost of international calls to 50 countries to 99c/minute was to attract more high-end customers. He says the strategy is paying off, with average revenue per user — a key industry metric — going up since the prices were cut.

    Vodacom has responded, with its CEO, Shameel Joosub, last week saying it plans to cut international call prices to 89c/minute to 51 destinations, provided customers pay a monthly fee of R5. The operator had planned to introduce the new rates on 1 October, but delayed their launch because of “minor technical issues in the final round of testing”.

    “I’m not surprised Shameel dropped the tariff,” Knott-Craig says. “It’s just a pity they didn’t check their billing system first.”

    He adds that if Vodacom maintains the new tariff — “unlike the last one that just fizzled out” (a reference to Vodacom’s ill-fated Freedom 99 tariff) — then Cell C will undercut it. “It’s as simple as that.”

    He also criticises Vodacom for charging its customers R5/month to benefit from the lower rates. “Why [force] opt-in? Opting in is like opting out. If you are serious, give it to everyone. Why pay R5? You’ve screwed [customers] long enough. Let them keep their R5.”

    Last week, Discovery Vitality, the rewards programme owned by Discovery Holdings, said it had signed a deal with Cell C that will see the two companies launch VitalityMobile, allowing Vitality members to call one another for free if both use Cell C’s network. Costing R29/month, the service will be available to subscribers of Cell C’s Straight Up 100, 200, 400 and 800 contracts. Customers will also get an additional 50% of data on top of their normal data allocation.

    Knott-Craig says Cell C will sign similar deals with other companies in an effort to attract more high-end customers from rival networks. “You can dream of a good margin, or you can forget about it … and make do with a lower margin and attack the higher-end space. You’re not going to get the higher base unless you give some margin away. We must be the highest-margin telco country in the world. Some analysts ask how, at 99c/minute, you can build a sustainable business. We could probably cut [tariffs] again and still be okay.”  — (c) 2012 NewsCentral Media



    Alan Knott-Craig Cell C MTN Shameel Joosub Vodacom
    WhatsApp YouTube Follow on Google News Add as preferred source on Google
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleSA telecoms status quo ‘not sustainable’
    Next Article Cell C to join 4G fray

    Related Posts

    Mobile operators face tougher rules on data and billing

    Mobile operators face tougher rules on data and billing

    26 January 2026
    South Africa's new fibre broadband battle - Duncan McLeod

    South Africa’s new fibre broadband battle

    20 January 2026

    TCS+ | Why cybersecurity is becoming a competitive advantage for SA businesses

    20 January 2026
    Company News
    WeBuyCars expands national footprint with two landmark supermarkets

    WeBuyCars expands national footprint with two landmark supermarkets

    28 January 2026
    The changing state of fintech - from disruption to infrastructure - BBD Software

    The changing state of fintech – from disruption to infrastructure

    27 January 2026
    Human behaviour, not AI will determine who wins in 2026

    Human behaviour, not AI, will determine who wins in 2026

    27 January 2026
    Opinion
    Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

    Why Elon Musk’s Starlink is a ‘hard no’ for me

    26 January 2026
    South Africa's new fibre broadband battle - Duncan McLeod

    South Africa’s new fibre broadband battle

    20 January 2026
    AI moves from pilots to production in South African companies - Nazia Pillay SAP

    AI moves from pilots to production in South African companies

    20 January 2026

    Subscribe to Updates

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

    Latest Posts
    Chinese car makers flood South Africa while factories lag - Mikel Mabasa

    Chinese car makers flood South Africa while factories lag

    28 January 2026
    Reports of the smartphone's impending death are greatly exaggerated

    Reports of the smartphone’s impending death are greatly exaggerated

    28 January 2026
    Popia is strong, Paia needs reform, says Information Regulator - Mukelani Dimba

    Popia is strong, Paia needs reform, says Information Regulator

    28 January 2026
    AI replaces people as Amazon cuts 16 000 corporate jobs

    AI replaces people as Amazon cuts 16 000 corporate jobs

    28 January 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

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

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}