Cell C to bring first 4G mobile network to South Africa

South Africa’s third mobile operator Cell C hopes to steal an early march on rivals MTN and Vodacom, with its plan to launch the country’s first 4G mobile network by the end of this year. Despite having a market share of less than 15 per cent, the operator intends to cash-in on surging smartphone sales and future growth of mobile broadband demand.

“We might have a fairly sustainable advantage because the frequency we’re offering will be hard for the others to achieve,” Cell C chief executive Lars Reichelt stated regarding the operator’s competitors. “How long it will take them I can’t say.”

Cell C has awarded a ZAR 2.9 billion (US$383 million) contract to Chinese vendor ZTE for the rollout of HSPA+, as part of its ZAR 5 billion 4G deployment. Reichelt added that ZTE will provide 4G services using the 900MHz frequency band, which offers wider and deeper coverage than existing two 100MHz networks.

The operator will announce in March the appointment of a second vendor for the remainder of the nationwide rollout. The new network will incorporate download speeds of up to 21Mbps, which is three times faster than what is currently available.

The company is 100 per cent owned by 3C Telecommunications, which is 60 per cent owned by Oger Telecom South Africa, a division of Saudi Oger; 25 per cent owned in an unencumbered holding by CellSAf, (a Broad-Based Black Economic Empowerment entity representing over 30 black empowerment companies and trusts), and 15 per cent by Lanun Securities SA, a wholly owned subsidiary of Saudi Oger Ltd.