CELL C is in talks with Huawei Technologies and ZTE about developing its high-speed network, CEO Jose dos Santos said.
The phone company is in late-stage negotiations with the Chinese manufacturers about building its first commercial 4G-technology network and may complete the deal at Mobile World Congress next week, Mr dos Santos said in an interview on Tuesday.
Cell C’s fast-data strategy would focus on developing long-term evolution service for business customers, he said.
"We’ve been spending the best part of eight to nine months putting this contract and our LTE strategy together," he said.
Cell C’s survival was at risk as Vodacom and MTN sought transactions to strengthen their dominance in SA, Mr dos Santos told legislators in November.
The closely held company, majority-owned by Dubai-based Oger Telecom, reduced its workforce last year and has appointed advisers to help explore options. Among the alternatives are a possible sale to domestic competitors, people familiar with the matter said a week ago.
Shareholder review
"Like any shareholder," the owners are reviewing "the top structure of what we do and how we’re going to do it", Mr dos Santos said. "That doesn’t mean they exit. When shareholders look at options, they look at options. If they do engage with certain people, which I’m not aware of, it’s just a good thing to do."
ZTE spokeswoman Rena Qin confirmed there were negotiations under way and declined to comment further.
Huawei spokeswoman Yi Linna declined to comment immediately.
Cell C, which increased customer numbers last year by 44% to 19.6-million subscribers, had an investment budget for 2015 of R2.2bn, according to a statement on Tuesday.
The partnership with Huawei and ZTE would focus on developing infrastructure, information-technology systems and customer billing, Mr dos Santos said.
"What we’re going to do with LTE is provide high-speed data to certain market segments that we want to participate in," Mr dos Santos said.
Cell C has tested 4G service at sites in Cape Town, Durban, Johannesburg and Pretoria, according to its website.
Source: http://www.bdlive.co.za/business/technology/2015/02/25/cell-c-plans-high-speed-network-with-huawei
