The recapitalization of Cell C is essential, as is the repayment of the money owed to MTN for its ongoing roaming agreement. Cell C appears to be three months late in this payment. The first phase of the roaming agreement was the sale of overcapacity in peri-urban and rural areas to Cell C. The second phase will open up roaming in urban areas and provide a way forward for the transition from Cell C`s radio access network to MTN infrastructure. The most recent agreement simply makes the conditions of competition more balanced and allows Cell C to compete more fairly for access to resources. “This roaming agreement is transformable for Cell C. The company is no longer burdened by the high cost of setting up networked football and we can focus our energy and efforts on developing innovative and disruptive services, which are welcomed by data-hungry consumers. Cell C`s prior agreement with MTN in 2018 allowed the company to use MTN`s 2G, 3G and 4G networks outside major cities, but the new deal also includes agglomerations. “The roaming agreement is transformable for Cell C,” Stevenson said.

JOHANNESBURG – Fighting Cell C announced yesterday that it has finally signed an expanded roaming agreement with MTN to strengthen its network, which has led the shares of its largest shareholder, Blue Label Telecoms, to a rally. Blue Label jumped 8.24 percent and closed at R2.76, while Telkom, which is trying to take over Cell C, lost 2.06 percent and ended the day at R54.73 per share. Craigie Stevenson said the deal was transformable for Cell C. The troubled network provider, Cell C, has signed a roaming agreement with its competitor MTN, which allows its users to use the MTN network. Angelo Tzarevski, senior partner in competition and cartel practices at law firm Baker McKenzie, said that for the conclusion of the roaming agreement to constitute a merger for competitive purposes, one party would have to acquire control of the other party`s production activities or facilities. Mr Kitson stressed the need to involve the Independent Communications Authority of SA and other competition authorities in any formal merger process. “I understand that the regulator is closely reviewing the terms of the new roaming agreement to ensure that no operational merger of the companies can take place, either formally or informally,” he said. By contrast, in 2015, Tzarevski stated that MTN and Telkom were attempting to enter into a contract for network management services and reciprocal roaming agreements that would effectively allow each party to move on each other`s mobile network. This resulted in a takeover by MTN, as it would assume financial and operational responsibility for the deployment and operation of Telkom`s radio access network, including its frequency capacity. In a statement, Telkom said it expected the roaming agreement and its terms to have been taken into account as part of Cell C`s discussions with Telkom. The expanded roaming agreement will come into force in early 2020, with the transition expected to take 36 months, Cell C said. Cell C, South Africa`s third-largest telecommunications network after Vodacom and MTN, said it expected the expanded roaming deal to take off in early 2020 and the transition would last up to three years.

The new agreement builds on the first agreement signed in May 2018, in which Cell C was equipped with 2G, 3G and 4G roaming services on the MTN network in selected areas of SA. The new agreement will allow Cell C to move through the MTN network in all regions of the country, according to the communication. . . .