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Cell C, Zain tie up roaming deal

By Leigh-Ann Francis
Johannesburg, 04 Jun 2010

African mobile telecoms provider Zain has finalised a roaming partnership with SA's Cell C to introduce its “One Network” borderless mobile phone platform in the country.

The partnership enables Zain's more than 41 million prepaid and postpaid customers, in 15 African countries, to be treated as Cell C customers when travelling to SA.

Cell C first announced the partnership in early May; however, the billing structure has only now been finalised as follows:

* Zain customers making local calls while in SA will be charged at Cell C's R1.50 flat rate.
* Zain customers making calls to their respective home countries while in SA will be charged at a lower rate than the current international rate charged to local customers. For example, a Zain subscriber from Malawi or Zambia will only pay R3.95 per minute when making calls to these countries when roaming on Cell C's Network, compared to the normal international call charge of R5 per minute.
* All other international calls (which fall outside the Zain One Network) will be charged at normal international prepaid rates.
* SMSes will be charged at a flat rate of 84c, whether sending a local or international SMS.

With the “One Network” service there is no need for customers to pre-register, no roaming deposits, and no complicated dialling formats. The partnership enables Zain customers to recharge their prepaid lines with locally purchased top-up cards.

Cell C has also inked a smaller deal with Econet Wireless, which will allow customers in SA to call home, in Zimbabwe, at cheaper rates.

Business as usual

Cell C notes that the deal is purely commercial and does not indicate the company's intention to move into Africa.

In May, Cell C Lars Reichelt said the Zain deal with Cell C is likely to rekindle speculation that Bharti may be shooting for a chance to buy Cell C.

However, Reichelt said at the time that as far as he knew, the shareholders were not in discussions to sell Cell C. “While there is money to be made, it doesn't make sense for the shareholders to sell,” he added.

Commenting on Zain's choice to use Cell C in SA, Chris Gabriel, CEO of Zain Africa, says: “Zain always had the desire to enter SA in one form or another. We chose Cell C as our for a variety of factors that include its dynamic nature and reputation for innovation, combined with its quality network.”

With the Fifa Soccer World Cup around the corner, the benefits for visiting fans will be immediate. “We have reached a significant milestone by reaching SA, an African superpower that this season will be the focal point of world attention,” concludes Gabriel.

Related story:
Cell C with Zain

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