The Cell C and Nextcom consortiums today confirmed they have reached a commercial settlement to the court case challenging the right of Cell C to become the third cellular operator in SA.
Nextcom CEO Bushy Kelobonye today said the matter was finally closed.
"My decision [to withdraw the case] was ratified by the board of Nextcom," he said. "There were questions about my authority, but those have now been sorted out. I don`t know of any shareholder or director who has a problem with it."
Anthony Glass, Nextcom spokesman and director, couldn`t be reached for comment. Glass is CEO of Union Alliance Media (UAM), which is a subsidiary of trade union investment company Union Alliance Holdings (UAH). UAH earlier this year declared that it would withdraw from Nextcom and support Cell C, drawing criticism from Kelobonye for "acting like a shareholder".
Cell C, for its part, issued a statement welcoming the end of the court case.
"Cell C exercised its rights as a commercial entity to enter into a commercial settlement in order to minimise risk and remove any further uncertainty surrounding the future of the third cellular licence," said Talaat Laham, CEO of the consortium.
Details of the settlement were described as confidential by both sides.
Cell C spokesman Zwelakhe Mankazana says the consortium is still working with the Independent Communications Authority of SA (ICASA) to finalise its licence document, but expected it to be issued during next week. He says the final licence need not be approved by the minister of communications, as ICASA is tasked to issue it.
Mankazana was not concerned that the settlement may be interpreted as capitulation or a tacit admission by Cell C of irregularities in the licensing process.
"Let me be quite categoric about this. Cell C has never conceded any of the allegations made. This cannot be seen as a concession, it is simply a pragmatic approach."
He says possible public misperception will be handled by "providing them with the best possible network".
Cell C plans a media conference next week to outline its future plans in detail.
Other consortiums which originally bid for the licence are not expected to continue the Nextcom challenge, as most are no longer active.
Related stories:
Legal chaos, but Cell C plans on track
Cell C to roll-out, Nextcom fights on
Nextcom challenge hits snag
UAM still believes in Nextcom`s chances
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