Cell C is making inroads in securing new corporate and government clients through partnerships with other companies. Last year, as part of its new growth strategy, the country’s fourth mobile network operator set up a unit focused on securing corporate and government clients, an area Cell C has so far struggled in.
CEO Jorge Mendes said this week they have partnered with 40 other companies to provide end-to-end products and services to corporate and state clients. These companies offer a range of products in hardware and software services, such as cloud computing.
“We partner with various companies to make sure that whatever service is required, we can deliver a total solution. We are seeing very strong improvements off a low base. You know, we didn't have any of the focus on this before. We're now starting to participate in some of these revenue streams.
"We are quite far down the road on a number of commercial negotiations, and we are landing some business. We've gained some customers, we've gained some revenue and we want to continue to drive that, because we think that partnership model is a good one,” said Mendes.
The company is using the MTN and Vodacom networks to provide connectivity to its prepaid and postpaid/contract customers, respectively. The postpaid customers are managed by Blue Label’s unit Comm Equipment Company (CEC). However, plans are under way to move those customers to be managed by Cell C, which is also a subsidiary of Blue Label, a JSE-listed prepaid voucher provider.
We've gained some customers, we've gained some revenue and we want to continue to drive that, because we think that partnership model is a good one
— CEO Jorge Mendes
“The shift towards a virtualised network has allowed us to move faster, innovate smarter, and focus on what truly matters – giving customers a reliable, quality connection when and where they need it,” said Cell C chief technology officer, Schalk Visser. “It’s not about who owns the towers. It’s about how well the network performs in the moments that matter to our users.”
Mendes said that over the past year there had been a complete portfolio overhaul of pospaid and prepaid bundles, as well as new tariff plans, and “we spend a lot of time to make sure we really are value for money”.
Cell C will spend about R1bn, mainly on its technology systems.
The telecoms firm is also heavily focusing on its mobile virtual network operator (MVNO) partnership business, one of its key revenue streams, to be the “home of MVNOs. We are effectively a network of networks; no reason to go anywhere else. We want Cell C to be the first choice for MVNOs. We are deliberate and intentional about the MVNO business. We believe it is a massive opportunity in the market. The bigger players will not be keen to go as aggressively in this direction because they have large market shares that will be cannibalised by going in this direction,” said Mendes.
There are up to 20 MVNOs using Cell C’s infrastructure to provide mobile data and voice services. These companies include Capitec, FNB, Old Mutual and retailers such as Mr Price and Shoprite.
Mendes said they were taking on more MVNO partners and were in discussions with others. “We probably have more than 10 still being onboarded. New partners for segments that have not been addressed, and lots of space for enterprise in different sectors than the current players. We are choosing partners selectively. We want to make sure we add value, we are not on a land grab.
"With strong year-on-year growth, improved liquidity, and a clear strategy in motion, Cell C is repositioned for profitable, sustainable growth.”
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