Cell C CEO Exposes the Unholy Alliance Between Vodacom and MTN
In a shocking admission, Cell C CEO Jorge Mendes revealed that the mobile operator was "handicapped from the start" by the ruthless tactics of its rivals, Vodacom and MTN. The duo, with their stranglehold on the market, deliberately jacked up call termination rates to cripple Cell C’s chances of success.
Mendes, a former Vodacom executive, knows the inner workings of the industry all too well. He exposed the sinister plot to TechCentral, revealing that Vodacom and MTN colluded to raise termination rates just as Cell C was entering the market in 2001.
"It’s like trying to land on someone else’s network all the time – you’re on a hiding to nothing," Mendes said. "Cell C got handicapped at the start – that’s the truth."
The consequences of this underhanded move were devastating. Cell C struggled to compete with the dominant duo, and its market share suffered as a result.
But the story doesn’t end there. In a bizarre twist, the communications regulator, Icasa, has proposed slashing call termination fees even further – and removing the asymmetry that has given Cell C a fighting chance.
Mendes is vehemently opposed to this plan, arguing that it would result in a loss of R270-million to R300-million in revenue for Cell C. He believes that Icasa’s proposal would only benefit the dominant players, allowing them to maintain their stranglehold on the market.
"It’s not about creating a level playing field – it’s about creating a playing field where the big guys get even bigger," Mendes warned.
The battle for Cell C’s survival is far from over. With the regulator’s proposal hanging in the balance, the future of the mobile operator hangs precariously in the balance. Will Cell C be able to overcome the odds and emerge victorious, or will the ruthless tactics of its rivals prove too much to overcome? Only time will tell.
