Page 93 - SAMENA Trends - October 2019

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WHOLESALE NEWS

Cell C in ‘Advanced Talks’ with MTN for an Extended Roaming Deal

Cell C is said to be in advanced talks with 2017, with Blue Label Telecoms taking (25%) – retained a 30% stake. The
MTN to gain more access to its network, a 45% stake in the company for ZAR5.5 remainder was split between Net1 (15%)
Tech Central reports. CEO Douglas billion, while 3C Telecommunications – and Cell C management and staff (10%).
Craigie Stevenson was quoted as saying itself owned by Oger Telecom (45.6%), The restructuring process aimed to slash
in an interview that an extended roaming the Employee Believe Trust (29.4%), Cell C’s debt to ZAR6 billion (from ZAR20
deal – giving Cell C additional access to and Broad-Based Black Economic billion), though majority owner Blue Label
MTN’s network in major cities such as Empowerment (B-BBEE) grouping CellSAf fell short of its target by ZAR3 billion.
Johannesburg and Cape Town – could be
concluded within the next month, adding:
‘We are not a tower-owning company, our
profits have to come from the services that
we are able to offer customers.’ Further,
the cash-strapped operator revealed that
a group of local banks have committed
to provide it with temporary liquidity by
extending the maturity of a ZAR1.2 billion
(USD78 million) loan, which was due to
be repaid in September. The cellco had
accumulated debt of ZAR9 billion by the
end of 2018, while its full-year losses
increased to ZAR8 billion (ZAR656 million
in 2017). Cell C emerged from a protracted
debt-restructuring rescue plan in August

ACCC to Examine Affordability of ‘Basic’ NBN Products

Meanwhile, the ACCC said it remains concerned about NBN Co’s
continued use of discounts to adjust access prices, highlighting
the fact that the company can withdraw these discounts ahead
of a notice period that it sets itself. As such, the regulator has
The Australian Competition and Consumer Commission (ACCC) is suggested that such arrangements may not be providing enough
launching an investigation into whether customers have access to certainty for RSPs as they develop and promote their retail offers.
‘basic’ broadband plans at fair and affordable prices. Undertaken Further, the regulator’s inquiry will also reportedly look into NBN
as part of an inquiry into wholesale charges for services offered Co’s service transfer and reversal charges, which are applied each
over the National Broadband Network (NBN), the ACCC said it will time an existing service is transferred between access seekers;
examine wholesale prices paid by retails service providers (RSPs), the ACCC has said it considers these charges can discourage the
with a specific focus on the charges levied for broadband plans efficient use of service transfer processes, impeding competition
offering downlink/uplink speeds of 12Mbps/1Mbps. According and impacting consumers. With the ACCC saying that the inquiry
to the regulator, it will consider whether regulation is required to will allow it to make a final access determination (FAD), should
ensure ‘a smooth transition for consumers to the NBN from legacy one be needed, ahead of the expiry of the current wholesale
services such as ADSL’. It was noted that the inquiry will also assess broadband agreement at the end of November 2020, it has
whether NBN Co’s most recent pricing offers – and specifically released a discussion paper examining the issues and seeking
the latest changes made to its entry-level offering – will allow views from interested parties.
RSPs to market ‘attractive retail NBN plans at ADSL-like prices’.

93 OCTOBER 2019