Mobile number portability to boost Cell C

Johannesburg, 08 Dec 2004

Cell C anticipates that when mobile number portability (MNP) is instituted, probably during 2005, this will help the mobile operator to further grow its subscriber base.

"Cell C has been working very hard in regard to pushing for MNP, as we have noticed that in other markets where it has come in, the last entrants to market are generally the biggest beneficiaries thereof, as it removes a strong barrier to increased churn," says CEO Talaat Laham.

"We are hoping to see MNP double the churn in our industry, which theoretically will mean we gain more subscribers than we lose. After all, if we lose 20% of our subscribers and gain 20% from the other networks, we win, as they have a bigger subscriber base than us."

He says the company has applied for a test licence for third-generation (3G) technology and is working in conjunction with suppliers to put plans in place for a 3G roll-out.

"We expect to see 3G roll-out taking place in the second half of next year, beginning with small 'islands` of coverage in the major metropolitan areas of Johannesburg, Durban and Cape Town."

Asked about the effect the ministerial determinations to liberalise the industry have had on the company, Laham says that at the outset, Cell C requested the option of self-provisioning, so the business in general is happy with the announcements.

"With ministerial determinations there are always threats and opportunities, but we believe the opportunities outweigh the threats and feel these announcements will be beneficial to our organisation," he says.

Speaking at an event celebrating the company`s third year in the telecoms market, Laham said Cell C has been instrumental in creating a competitive mobile market in SA, through providing increased consumer choice, tariff innovations and exciting social responsibility programmes.

He claims the company now has around two million subscribers, 400 000 of whom are postpaid, which is 11% of the total market.

"We have exceeded many of the goals set for us by the regulator, and currently carry 74% of our traffic on our own network. We aim to increase this to 85% by the end of 2005," says Laham.

[VIDEO]"Cell C has rolled out a total of 1 900 base stations so far, and will grow this to 2 334, to ensure our network capacity meets our market share expectations."

He says the operator, which has invested R7.3 billion to date and expects to be cash-positive by the third quarter of 2005, has participated fully in developing the ICT empowerment charter framework.

"Cell C is already very strong in this regard, as R4.3 billion has been spent on procurement from black empowerment companies and over 85% of our staff complement consists of previously disadvantaged individuals," says Laham.

"Our emphasis for next year will be on improving our prepaid quality and expanding our postpaid base, and also on service proliferation and lifestyle-focused product innovation. There is a huge opportunity in the local mobile market, and we are just getting started."