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

      Trump tariffs could wreck South Africa’s vehicle manufacturing industry

      14 July 2025

      Legislative overhaul on the cards for South Africa’s ICT sector

      14 July 2025

      The 1940s visionary who imagined the Information Age

      14 July 2025

      Microsoft South Africa to get new MD as Lillian Barnard moves to regional role

      14 July 2025

      Zuckerberg used open source to scale AI – now the lock-in begins

      14 July 2025
    • World

      Grok 4 arrives with bold claims and fresh controversy

      10 July 2025

      Bitcoin pushes higher into record territory

      10 July 2025

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025

      Grammarly acquires e-mail start-up Superhuman

      1 July 2025

      Apple considers ditching its own AI in Siri overhaul

      1 July 2025
    • In-depth

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025
    • TCS

      TCS+ | MVNX on the opportunities in South Africa’s booming MVNO market

      11 July 2025

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025

      TCS+ | First Distribution on the latest and greatest cloud technologies

      27 June 2025
    • Opinion

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 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
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • 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
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » MTN ‘comfortable’ with Blue Label deal

    MTN ‘comfortable’ with Blue Label deal

    By Duncan McLeod2 March 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    MTN South Africa CEO Mteto Nyati

    MTN South Africa CEO Mteto Nyati has said the mobile operator is “comfortable” with its distribution partnership with JSE-listed Blue Label Telecoms, despite the latter’s plan to acquire a 45% stake in mobile rival Cell C.

    Blue Label, which distributes airtime on behalf of all of South Africa’s mobile operators, said this week it is moving ahead with a plan to acquire the Cell C stake in a deal worth R5,5bn.

    The acquisition forms part of a recapitalisation of Cell C, which is drowning in debt. Under the plan, Cell C’s debt will be reduced from north of R20bn to less than R6bn, putting the operator in a stronger position to compete with bigger rivals MTN and Vodacom.

    The deal has prompted speculation that MTN and Vodacom might walk away from their distribution relationships with Blue Label. Those concerns may be unfounded if MTN’s reaction to the deal is anything to go by.

    Nyati, who used to sit on Blue Label’s board when he was MD of Microsoft South Africa — Microsoft used to own a minority stake in Blue Label — said he has deep insight into the business.

    “If they sell more Cell C, they will diminish their value proposition,” Nyati said. “We will continue to watch it, but we don’t see an immediate threat. We have, in fact, strengthened our relationship with Blue Label and agreed some aggressive growth targets with them. If they switch and push more Cell C, they won’t earn the commission from us. I’m comfortable with that relationship.”

    He said Cell C will remain constrained as a competitor, even after the planned recapitalisation.

    “Over the last two years, on capex alone, MTN has spent R20bn to R23bn. If you are any player you need to be spending that kind of money,” he said. “The fact that they (Cell C) have new shareholders does not take away that there are fundamentals that will continue to face that business. There needs to be a level of consolidation in the market, maybe at a network level.”

    Earlier this week, Blue Label Telecoms denied its contract with Vodacom to distribute airtime was being cancelled, rubbishing widespread market speculation that the mobile operator had served notice to terminate the agreement.

    Co-CEO Brett Levy said the Vodacom deal still had four-and-a-half years to run.

    Levy’s brother and co-CEO Mark Levy said it’s “business as usual” with all mobile partners, including Vodacom. Blue Label, he said, was positioned as a “neutral distributor of products and services and people shouldn’t lose sight of that even though we have an agreement in place” with Cell C.

    “We will remain loyal to our partners,” Brett Levy said. “We will continue being a neutral aggregator because … that’s what we do.”  — © 2017 NewsCentral Media



    Blue Label Telecoms Microsoft Mteto Nyati MTN MTN South Africa Vodacom
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleNet1 to buy 15% of Cell C
    Next Article Scientists gather to plot AI doomsday scenarios

    Related Posts

    Microsoft South Africa to get new MD as Lillian Barnard moves to regional role

    14 July 2025

    Blue Label Telecoms to change its name as restructuring gathers pace

    11 July 2025

    Spam call epidemic: operators say their hands are tied

    10 July 2025
    Company News

    Banking on LEO: Q-KON transforms financial services connectivity

    14 July 2025

    The future of business calling: Voys brings your landline to the cloud

    14 July 2025

    How digital twins and AI are shaping the future of security

    14 July 2025
    Opinion

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    Subscribe to Updates

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

    © 2009 - 2025 NewsCentral Media

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