ALAN FINLAY, Johannesburg | Tuesday 12.00pm
CELLPHONE giants Vodacom and MTN have welcomed the awarding of the preferred bid for the third cellular licence to Cell C; while Vodacom insists the consortium’s success in the industry is vital for future investment in the country.
The South African Telecommunications Regulatory Authority on Tuesday announced Cell C as its preferred bidder.
Vodacom Group CEO Alan Knott-Craig said the telecommunications industry is generally considered a strong investment and that Cell C’s failure will discourage foreign investment in other industries.
“We will loose some market share, but there will be a bigger cake,” said Knott-Craig, who added that there is “no question” that Cell C is the right choice.
MTN’s Jacques Sellschop agrees that a third licence will stimulate the industry, but points out that around the world third cellular licence holders usually command a relatively small market share of around 10-12%.
Amongst other things, Satra said Cell C has a “sound and viable business plan” and an “impressive” empowerment aspect to its bid.
Satra has given the other five applicants – NextCom, AfricaSpeaks, Spatial Cellular, Telia/Telenor and Five Mobile Networks – two weeks to to respond to its decision. It will make its final recommendation to the minister by the end of March.
The announcement of the preferred bid ends months of speculation and controversy over the awarding of the third licence.
Last year Satra’s tender process was delayed when parliament’s communications portfolio committee called for six of its councillors to be probed for alleged irregularities, corruption, and maladministration.