SA's third mobile operator, Cell C, has started spending the R5 billion it has earmarked for network expansion.
The company has awarded a R2.865billion deal to Hong Kong-listed ZTE. The companies have entered into network supply and managed services agreements.
In December, recently-appointed CEO Lars Reichelt said the company was investing R5 billion to grow its network, despite the fact that SA is at 100% mobile penetration. He believed there was still room to grow the network, despite the high penetration of SIM cards in circulation.
“It is an exciting industry and it's what I love to do. I like to come in as the underdog and surprise everyone,” Reichelt said.
At the time, Reichelt indicated Cell C was looking to bolster its Internet offerings and would look at the latest generation HSDPA+, which allows a maximum throughput of 21Mbps across the network.
Today, ZTE said it would supply Cell C with GSM and Universal Mobile Telecommunications System(UMTS) technologies. UMTS is a 3G mobile telecommunications technology.
The deal, worth $378 million, includes product sales and engineering services, and is already being set in motion, says ZTE. Cell C's network expansion follows the R7.5 billion invested by larger rival MTN last year to improve its network coverage and services.
ZTE has about 62 000 employees, of which 10 000 work in about 107 offices around the world. It provides products and services to 140 countries and regions, serving major telecoms operators in Asia Pacific, South Asia, North America, Europe, Latin America and Africa.
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