B Clear and Simple, the cellular service provider which recently sold a large part of its subscriber base to MTN, may consider pulling out of the South African market altogether.
The Australian-owned company earlier this month sold the estimated 41 500 clients using the MTN network to M-Tel, the primary MTN service provider.
Neither company has released details of the deal, although B Clear SA CEO Ian Lloyd says a fair price was paid. He refused to comment further, citing confidentiality agreements.
MTN had an option to take up a 26% stake in the SA operation when it entered the country in early 2000, but never did so. B Clear is owned by B Digital, a company listed in Australia.
Lloyd says B Clear is no longer taking on new customers to grow the estimated 10 500 subscribers using the Vodacom network. He says the reason is that Vodacom is not driving its contracts heavily at the moment as it is waiting for the market to absorb Cell C`s entry. B Clear packages cellphones with 24-month contracts.
Although the company is in negotiations with Cell C to become a reseller of that company`s products, no deal has been struck yet.
Lloyd says a deal similar to that with M-Tel is possible with the remaining Vodacom subscribers.
"The board is assessing the future and will decide whether we build our base of subscribers back up or not," he says, admitting there is a possibility of abandoning the local venture.
Although parent company B Digital earlier said it hoped to piggyback on MTN`s expansion into the rest of Africa, Lloyd says this is not on the cards. "We use a telephone and credit card system. It would be impossible to go into, say, Nigeria for example."
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