A cross-sector deal, which would be a landmark move, is being put together between Cell C and big four bank, First National Bank (FNB), reports Business Times.
The paper says that rumours are swirling that the deal is in the offing and could lead to the bank launching its own mobile operation on Cell C's network. The paper says that Cell C CEO Alan Knott-Craig has neither confirmed or denied the talks.
However, it quotes Knott-Craig as saying that it was not "far-fetched" for FNB to consider becoming a virtual cellular operator. He is quoted as saying that a bank would add a large number of customers to its base.
"Cell C has always been a supporter of mobile virtual operators," Knott-Craig is quoted as saying.
However, SA's only other virtual operator, Virgin Mobile, has failed to gain traction in SA.
The company, which has about 500 000 subscribers, or around a percent of the market, has been in South Africa for seven years.
This week, Cell C said its majority shareholder - Ogar Telecom - had earmarked $350 million - or R3.5 billion - as an additional investment into the company, while the operator also secured a R2.2 million loan. The equity boost follows last year's $200 million injection, and a further significant investment is scheduled for 2014.
The bulk of the net amount, around R4.7 billion, will go into growing capacity and customers as it seeks to boost its subscriber base to 20% of the market by the end of 2017.
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