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Blue Cellular taps into rural telecoms market

Kgaogelo Letsebe
By Kgaogelo Letsebe, Portals journalist
Johannesburg, 02 Jun 2017
Barry Taitz, CEO of Blue Cellular.
Barry Taitz, CEO of Blue Cellular.

Telecoms distribution specialist Blue Cellular is aiming to tap into 10 million pre-paid mobile subscribers in rural KwaZulu-Natal through a partnership with Congress of Traditional Leaders of South Africa (Contralesa KZN) and Amaqhawe Esizwe.

According to Barry Taitz, CEO of Blue Cellular, there are 353 traditional leaders who form part of Contralesa KZN. "Each of these leaders will have an independent account created into which the charity funds earned from the agents (or resellers of pre-paid airtime and data) that report into them, will be paid. These funds will be used for the most pressing projects needed in each community, and can range from education, to housing, water and sanitation."

Blue Cellular focuses on SIM cards, handsets and telecom distribution into rural areas across Africa assisting telecom leaders Vodacom, MTN and Cell C to drive customer acquisition and retention. The company uses the size of the buying group as leverage to negotiate deals and discounts on airtime and data. Taitz says he anticipates that over the coming year, 10 million subscribers will be buying their prepaid airtime and data through an agent linked to one of the traditional leaders who form part of this partnership. "Not only will the subscribers benefit from free starter packs and discounted pricing, but at no cost to themselves, they will be directly impacting job creation and community upliftment," says Taitz.

The Mobile Economy Africa 2016 report indicated that there will be 1.3 billion people who will be connected via mobile in Africa by 2020, while the mobile industry's contribution to the GPD is expected to rise to R214 billion in the same year.

Prince Zulu, spokesperson for the Amaqhawe Esizwe and Contralesa partnership, says the deal will impact the region positively: "We will be creating approximately 2 000 jobs in rural and under-accessed areas. Agents will be appointed and trained to sell airtime in the communities. Each agent will act as an entrepreneur, and will be supported and upskilled to ensure their micro business has the best chance of success."

According to the company, training will commence in the coming weeks and agents are expected to be ready to trade by mid-June.

Zulu concludes that corporate South Africa needs to employ lateral thinking with its CSI initiatives to ensure that projects are done in close co-operation with needy communities.

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