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Cell C: Big push into Mobile Broadband market

ADSL South Africa (Broadband South Africa), 29 December 2009

Cell C has for a long time been criticised for not offering third-generation (3G) services. This is however about to change if one considers the recent announcement made by Cell C. They’re planning to build the most advanced 3G network in South Africa as part of a do-or-die strategy. 

 

A bold move… 

 

Cell C’s plans to build a HSPA+ or evolved high-speed packet access network, is to say the least, a bold move. This is especially true if one considers that it’s late in the game with MTN and Vodacom already deeply entrenched in the Mobile Broadband market. 

 

In addition to the above, it is no secret that Cell C’s former CEO, Jeffrey Hedberg, who resigned in March this year, wanted Telkom to buy Cell C. In retrospect, one cannot blame him for pushing in that direction given the fact that Cell C has not been generating cash flows fast enough to lower the risk of being caught up in a vicious debt cycle. 

 

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