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Cell C reaches contract milestone

By Rodney Weidemann, ITWeb Contributor
Johannesburg, 20 May 2005

Mobile operator Cell C's inroad into the lucrative postpaid or contract segment of the market has been underlined by its milestone of 500 000 customers.

The company`s chief commercial officer, Jim Courtney, says this landmark figure follows Cell C`s most successful quarter in terms of sales.

"In the past six months, we have captured over 20% of all new post-paid customers in the country, which has driven our total customer base to around 2.3 million, which amounts to 12% of the market share," says Courtney.

"These figures, along with recent acquisitions of several major accounts, demonstrate that Cell C is now a force to be reckoned with in the local cellular market and that our market strategies are succeeding."

He says high-value postpaid customers are a critical revenue driver and that as it makes further gains in this segment, the company expects to continue to deliver greater profitability and increase its average revenue per user (ARPU).

Cell C`s chief corporate and strategy officer, S`bu Mngadi, says continued strong growth over the next two years is anticipated, as the organisation capitalises on the liberalisation of the local telecoms industry and the forthcoming introduction of mobile number portability.

"The wholesale environment arising from liberalisation provides a significant upside for Cell C to attract higher ARPU subscribers and significantly increase our corporate customer base," says Mngadi.

Related stories:
Cell C`s BEE consortium to sell shares
Cell C cuts data tariffs
Cell C to raise R5bn overseas
Cell C has big plans for 2005

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