Cell C 'considers` 3G offering

Johannesburg, 29 Sept 2006

South African mobile operator Cell C is considering offering a third-generation (3G) service to compete with bigger rivals MTN and Vodacom, and to complement its EDGE service, but the move will depend on the feasibility of such an offering.

This is according to CTO Pierre Obeid, who says: "Currently we are looking at the market - studying the viability of offering 3G.

"We might offer 3G services in due course, but unless there is a market need for the service, we will not roll-out a 3G network."

Obeid adds that the company, currently offering an EDGE service significantly slower than Vodacom or MTN`s 3G and high-speed downlink packet access broadband options, has consciously focused on home PC Internet access through a USB modem allowing consumers to use Cell C EDGE.

"That was a market that was not previously addressed," he says.

According to another senior source inside the network operator, who does not wish to be named, Cell C has seen a 20% month-on-month growth in data traffic over the past six months.

However, subscriber numbers on Cell C`s EDGE offerings were not forthcoming at the time of publication.

Carrying 85% of traffic

Despite a popular belief that Cell C is still largely "piggy-backing" off Vodacom`s infrastructure through a roaming agreement, Obeid reveals 85% of its traffic (voice and data) is now handled by Cell C infrastructure.

"We now have 2 165 base stations," he says, predicting that by 2009 this will be more than 2 400.

However, he also points out that Cell C is likely to continue using Vodacom`s network for the foreseeable future in specific areas - notably remote locations where potential subscriber numbers do not justify rolling out infrastructure, but where coverage is needed.

"Our roaming agreement with Vodacom? Well, we consider it an advantage to Cell C, not a disadvantage," Obeid argues.

Meeting obligations

After five years, Cell C claims to cover 63% of the population and 28.5% of the geography of SA. This is above its licence obligations of 60% population and 8% geographical coverage six years into its existence - terms stipulated at Cell C`s inception.

Questioned on the heated dispute between Cell C and Vodacom dating back to May, when Vodacom accused Cell C of sending it "technically illegal" data, causing its own network to fail, Obeid is tight-lipped.

"We`re still talking to Vodacom on this issue - there`s no further statement at this stage except to say that we still believe in the statements we made at the time."

Vodacom had, at the time, temporarily terminated interconnection links with the smaller operator, and both sides blamed each other for the problem.