MTN clinches deal to take Cell C roaming contract from Vodacom

MTN [JSE:MTN] will replace its cross-town rival Vodacom [JSE:VOD] in a network-sharing deal with Cell C, South Africa’s third-largest mobile phone operator.

Cell C, which has roamed on Johannesburg-based Vodacom’s network since 2001, will switch to MTN from next month, Cell C chief executive officer Jose dos Santos said in an email.

The bulk of services will be transferred within two months and will allow the operator to offer 3G and 4G connectivity in areas where Cell C has decided not to build networks, he said.

For MTN, the deal will help fund “our ongoing network expansion,” MTN South Africa CEO Godfrey Motsa said in a statement.

Cell C will roam on MTN’s network in smaller cities and rural areas, where the company has additional capacity. Vodacom couldn’t immediately comment.

South Africa is MTN’s largest market after Nigeria and the company has invested almost R30bn during the past three years to expand its network and catch up with Vodacom’s coverage in the country.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER
ZAR/USD
16.58
(+0.82)
ZAR/GBP
21.38
(+1.01)
ZAR/EUR
19.49
(+0.59)
ZAR/AUD
11.92
(+0.51)
ZAR/JPY
0.16
(+0.87)
Gold
1904.95
(+0.92)
Silver
23.74
(+1.72)
Platinum
897.00
(+0.75)
Brent Crude
42.12
(+1.78)
Palladium
2310.00
(+0.76)
All Share
54446.78
(+0.34)
Top 40
50159.14
(+0.23)
Financial 15
10158.72
(+0.86)
Industrial 25
73766.43
(+0.79)
Resource 10
53032.08
(-0.66)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 1404 votes
It depends on how the funds are used.
73% - 9098 votes
No. We should have gotten the loan elsewhere.
16% - 2002 votes
Vote