Cell C has finally released a few details about its €240m (R2,2bn) loan agreement with China Development Bank. The money will be used to restructure the company’s debt. TechCentral reported on 24 August that the mobile operator had secured the loan.
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It’s Friday again and that means another episode of SA’s business technology podcast, TalkCentral. This week, your hosts Duncan McLeod and Candice Jones delve into the ongoing drama at the department of communications, where fired communications department director-general Mamodupi Mohlala has been reinstated — at least for now — by minister Siphiwe Nyanda.
Telkom has resumed its high-profile anti-Neotel taunts on Gauteng billboards, this time erecting a giant sign just metres in front of its rival’s new head office in Midrand, north of Johannesburg. In a clear reference to Neotel’s orange corporate branding, the Telkom hoarding says: “Remember, exercise caution when you see orange.”
Cell C has signed a €240m (R2,2bn) loan agreement with China Development Bank, according to a statement issued by an SA government delegation, led by President Jacob Zuma, that is visiting China this week. The loan comes just months after Cell C shareholders agreed to restructure the mobile operator’s debt by converting billions of rand of debt into equity.
The seventh episode of SA’s business technology podcast, TalkCentral, is now available for download. This week, your hosts Duncan McLeod and Candice Jones talk about the significant flow of news around MTN’s interim financial results presentation, including plans by its SA subsidiary to build a rural broadband network. We also talk about Cell C’s problems trying to trademark its new logo, communications minister Siphiwe Nyanda’s press conference on digital terrestrial television, Vodacom in the Democratic Republic of Congo and Super 5 Media’s letter to Icasa.
MTN SA plans to build a third-generation (3G) mobile network to offer wireless broadband to consumers in outlying areas. It will build the 3G network at 900MHz. TechCentral has learnt that MTN expects significant growth in demand for broadband services outside SA’s cities over the next few years and so is keen to boost its 3G coverage in these areas.
Cell C can continue using its controversial new branding, which includes a design that resembles the copyright symbol. There’s even a “reasonable possibility” it will be successful in registering “Cell ©” as a trademark, despite the fact that various applications it made in December 2009 have been “provisionally declined” by the Registrar of Trademarks. These are the views of Don MacRobert, one of the country’s leading intellectual property and trademarks lawyers, who says the cellular operator can continue using the branding despite the registrar’s decision, which was handed down on 2 August, just two days before Cell C unveiled its new branding.
A plan by the Independent Communications Authority of SA (Icasa) to cut wholesale call termination rates may be delayed until next year, parties close to the process say. The rates, which were supposed to be cut last month as a first step on a two-year glide path down, are the fees the operators charge each other to carry calls onto their networks.
SA’s cellular communications market is about to get a big shake-up as two players, one new, Telkom Mobile, and one reinvigorated, Cell C, get ready to go toe to toe with each other and incumbents MTN and Vodacom. SA’s smallest mobile operator, Cell C, has never had an easy time of it. Launched a decade ago after a particularly troubled birth, the operator has faced an uphill battle against dominant incumbents MTN and Vodacom.
Are Cell C, Dimension Data and Andile Ngcaba’s investment firm Convergence Partners planning to build a national fibre-optic telecommunications network? Rumours have begun circulating that the three companies are in talks about doing exactly that. TechCentral has established from various parties that preliminary talks are already underway.