Cell C and MTN South Africa have failed to reach agreement on certain matters relating to their long-standing commercial relationship, although both companies say their existing network-sharing arrangements remain in force.
In separate statements, the telecommunications companies confirmed they had held extensive discussions but had not resolved all outstanding issues.
In a quarterly update for the period ended 30 September, MTN South Africa says it has engaged extensively with Cell C on the terms of their commercial relationship, but the parties had not reached agreement on certain matters.
“These will be addressed through the mechanisms provided for in the parties' agreement, while engagement on the terms of the relationship going forward continues,” MTN says.
The operator adds it will provide a further update when appropriate.
In a statement to ITWeb, Cell C, meanwhile, says its infrastructure-sharing agreements with MTN and Vodacom remain in force under their existing terms, with no amendments agreed or signed.
The company adds its agreement with MTN is a long-standing arrangement that runs until 2032.
“Both agreements remain in force on their existing terms, and no amendment has been agreed or signed,” Cell C says.
It adds there will be no impact on the network services it provides to customers and business partners.
“We are not in a position to provide further detail beyond confirming that no changes to the terms of either agreement have resulted from any engagement to date,” the company says.
Cell C notes it will make appropriate disclosures to the market if there is anything material to report.
The developments put the spotlight on Cell C’s reliance on infrastructure-sharing arrangements to provide nationwide coverage.
The operator uses its own licensed spectrum alongside reciprocal network-sharing agreements with MTN and Vodacom to deliver services to customers.
The discussions come as Cell C continues to operate as a mobile virtual network operator, relying on wholesale network infrastructure rather than maintaining a conventional nationwide radio access network of its own.
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