Cell C in high-speed network talks with Huawei, ZTE

File. Cell C Pty Ltd., the third-largest wireless operator in South Africa, is in talks with Huawei Technologies Co. and ZTE Corp. about developing its high-speed network, Chief Executive Officer Jose Dos Santos said.photo by Simphiwe Mbokazi 453

File. Cell C Pty Ltd., the third-largest wireless operator in South Africa, is in talks with Huawei Technologies Co. and ZTE Corp. about developing its high-speed network, Chief Executive Officer Jose Dos Santos said.photo by Simphiwe Mbokazi 453

Published Feb 26, 2015

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Chris Spillane

CELL C was in talks with Huawei Technologies and ZTE about developing its high-speed network, chief executive José Dos Santos said.

The third-largest wireless operator in South Africa is in late-stage negotiations with the Chinese manufacturers about building its first commercial 4G-technology network and might complete the deal at Mobile World Congress next week, Dos Santos said on Tuesday. Cell C’s fast-data strategy would focus on developing long-term evolution service for business customers, he added.

“We’ve been spending the best part of eight to nine months putting this contract and our long-term evolution (LTE) strategy together,” he said at the company’s headquarters in Johannesburg.

Cell C’s survival was at risk as South Africa’s two larger cellphone operators, Vodacom and MTN, sought transactions to strengthen their dominance in the country, Dos Santos told lawmakers 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 were a possible sale to domestic competitors, people familiar with the matter said a week ago.

Like any shareholder,” the owners were reviewing “the top structure of what we do and how we’re going to do it”, 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.”

Rena Qin, a spokeswoman for Shenzhen-based ZTE, confirmed there are negotiations under way and declined to comment further. Yi Linna, a spokeswoman for Shenzhen-based Huawei, declined to comment immediately.

Cell C, which increased customer numbers last year by 44 percent to 19.6 million subscribers, has an investment budget for 2015 totalling R2.2 billion, according to a statement on Tuesday.

The partnership with Huawei and ZTE would focus on developing infrastructure, information technology systems and customer billing, 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,” Dos Santos said.

Cell C has tested 4G service at sites in Cape Town, Durban, Johannesburg and Pretoria, according to its website. – Bloomberg

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