Blue Label co-CEO Brett Levy told investors Thursday that Cell C will not engage in a price war with MTN, Vodacom, and Telkom’s mobile division.
“We are not getting into any dogfights. We are not getting into any war with any networks,” Levy stated.
“Our price is very competitive as it is,” he asserted.
Responding to questions, Levy also said that Blue Label’s board is considering buying the remaining 50.47% of Cell C.
Following a complex recapitalization deal to try and save Cell C that closed in September, Blue Label’s stake in the company increased from 45% to 49.53%.
“We believe in this asset. We made it clear [in previous sessions] that the Blue Label board must make one of three decisions post the recap,” Levy stated.
“Decision one: Remain where we are. That’s not going to be a decision, so it’s one of two decisions: Do we sell down, or do we take control? And in time, we will give you that exact answer,” he said.
“Sorry we can’t talk more on that.”
Further asked about potential regulatory hurdles a takeover might face, Levy said they don’t foresee any problems at the Competition Commission or industry regulator Icasa.
“I think everyone [at Icasa] would welcome it if we went this route, so everyone has stability.”
During his presentation to investors, Levy said that Cell C has five assets: its brand, radio frequency spectrum, the “engine” (specifically prepaid), and its strength in the mobile virtual operator market.
In explaining Cell C’s “engine”, Levy claimed that it now offers 4G and 5G connectivity through its partnership with MTN.
“As we transition off our network onto MTN… we are now able to offer them 4G and 5G capability. We are able to offer them a much better network,” he said.
Levy mentions the ability to offer 5G at least four times during the explanation.
It is interesting that Levy told investors Cell C can offer 5G, as the operator has not made 5G available to its subscribers or made any announcements to the effect.
Cell C chief technology officer Schalk Visser told MyBroadband in June that they were in discussions with their infrastructure partners MTN (prepaid) and Vodacom (contract) and were close to offering 5G.
Source: My Broadband
