Cell C signs deal with Virgin

By Paul Vecchiatto, ITWeb Cape Town correspondent

Cape Town, 07 Dec 2005

Cell C has concluded its deal with Virgin to form a 50/50 joint venture, which the country`s smallest network operator expects to help expand its market position.

The joint venture, expected to launch during the first half of next year, will trade as Virgin Mobile SA and operate as an independent service provider on the Cell C network, Cell C announced.

The deal will not be affected by British cable operator NTL`s offer to combine with Virgin Mobile in the UK, both parties claim.

"Each Virgin Mobile venture, in every country in the world, is operated as a separate company under the Virgin branded capital model," a company statement said.

Yesterday, Virgin Atlantic chairman Richard Branson urged other Virgin Mobile shareholders to accept the lb835 million offer from NTL.

The value of the local deal could not be disclosed and the joint venture would operate indefinitely, Cell C chairman Talaat Laham told ITWeb.

Cell C will retain the branding of its products, Laham said, but declined to say what products and services Virgin Mobile SA would sell.

"That information will be made available at the right time," he said.

The joint venture between the two has been expected for some time. Laham said it was just a matter of concluding all the contract details that extended negotiations.

The introduction of number portability in the middle of next year would be good for Cell C and Virgin, he said. "The advent of number portability is always good for the third cellular licence holder."

"SA is a key market for Virgin and a country that I personally love very much. Our partnership with Cell C will bring a new approach to the mobile market and will be a refreshing alternative from the bland offerings of other players. I am looking forward to coming to SA to launch this exciting new business next year," Virgin CEO Richard Branson said in a statement.