Thought Leadership | 31 March 2023
In many mature markets you find two infrastructure players that invest heavily and continuously in their networks, with several other mobile operators leveraging this infrastructure and competing based on the services they offer customers. Cell C recognised that a new way of doing business was needed to keep abreast with these trends in the telecoms industry. We proactively pursued a nimbler, fit-for-purpose business model that is sustainable and stimulates competition.
When faced with the question of competitiveness, Cell C decided to look at this changing landscape through a different lens and we have now implemented a strategy as a buyer of infrastructure services to strengthen our ability to compete and effectively remove infrastructure investment to rather invest in new platforms and offerings to customers.
As you are aware, we are making good progress in the network migration which involves switching off our own physical radio access network (RAN), whilst activating a new virtualised RAN on network partner infrastructure.
MARKET TRENDS
Technology advances have enabled industry change and access to infrastructure as a service is enabling competition in a digital economy with infrastructure sharing arrangements now entrenched globally.
The South Africa telecommunications landscape is changing rapidly with healthy competition and a market now made up of those that own infrastructure and those that buy infrastructure as a service.
The investments in infrastructure increase exponentially as new technologies are introduced, i.e., moving from 2G → 3G → 4G → 5G and beyond; making it even more difficult for smaller players and new entrants to enter and effectively compete in an MNO market.
THE TECHNOLOGY DIFFERENCE BETWEEN THE NETWORK PARTNERSHIP WITH MTN AND VODACOM
MTN
The technology used on the virtualised radio access network is known as multi operator core network, in short MOCN, where Cell retains full control, and you will still see the brand name Cell C on the mobile phone – The arrangement with MTN is a MOCN partnership. For consumers, this is a seamless experience with no interruptions or manual interventions required.
VODACOM
The arrangement with Vodacom is a traditional roaming agreement, which is commonplace in the telco industry, and indicated on the mobile phone, you will see the visited network as you roam.
Apart from this business model being more efficient for us and the industry as whole, it will also allow Cell C to focus resources and investment into digital platforms and services to consumers. Digital innovation is strongly influenced by changes and/or enhancements in technology, through this, Cell C is looking to reinvent and reposition itself to be more competitive and sustainable in the South African market. In support of this, good progress has been made in the modernisation of our Core network and the replacement of our old billing system.
Cell C is a leading mobile provider in South Africa offering a wide range of products and services, including voice, data, device and SIM deals to more than 20 million customers.
