EDITORIAL: The Cell C illusion
Aiming to break MTN and Vodacom’s stranglehold through new players has been wishful thinking
For a market fixated on competition as a cure-all, the SA telecom sector has long been a lesson in misplaced illusion. SA’s ambition to break the stranglehold of MTN and Vodacom by injecting new players into the ecosystem has, in reality, yielded little more than wishful thinking. Despite two decades of survival, Cell C has yet to prove its relevance in the pricing calculus of its larger rivals.
Now, as Blue Label Telecoms prepares to spin it off, the market is reacting, not with enthusiasm for a rejuvenated challenger, but with a quiet relief of a burden lifted. The sharp rise in Blue Label’s share price after the announcement is less a sign of confidence in Cell C’s prospects than investors saying “good riddance”. Any spin about a rebirth feels more like a corporate sleight of hand than a serious attempt to reshape the industry. ..
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.