Vodacom in talks to buy Cell C subscribers
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Dobek Pater, Telecommunications Analyst With Africa Analysis Talks to Gugu Mfuphi about, Vodacom is in talks with Cell C about taking on the smaller rival’s contract-paying mobile-phone customers, a move that would strengthen its position as South Africa’s telecoms market leader, according to people familiar with the matter.
The unit of the UK’s Vodafone would gain just over 1 million high-paying subscribers from the deal, said the people, who asked not to be identified as the discussions are ongoing. The talks are at an early stage and could yet fall apart, they said.
Cell C and its biggest shareholder, Blue Label Telecoms Ltd., are looking at ways to cut costs and strengthen the balance sheet as they battle to service R9 billion ($637 million) of debt.
Transferring the customers to Vodacom would attract a fee and free Cell C from the cost of servicing clients, including handset subsidies and credit checks, said the people. The carrier could also cut jobs and close some stores after slimming down operations, they said.
The unit of the UK’s Vodafone would gain just over 1 million high-paying subscribers from the deal, said the people, who asked not to be identified as the discussions are ongoing. The talks are at an early stage and could yet fall apart, they said.
Cell C and its biggest shareholder, Blue Label Telecoms Ltd., are looking at ways to cut costs and strengthen the balance sheet as they battle to service R9 billion ($637 million) of debt.
Transferring the customers to Vodacom would attract a fee and free Cell C from the cost of servicing clients, including handset subsidies and credit checks, said the people. The carrier could also cut jobs and close some stores after slimming down operations, they said.
