MTN South Africa has signed a new roaming/service agreement with Cell C, the third-largest network carrier in South Africa. The agreement is in a bid to scale the plummeting shares of Cell C. The embattled telco will make use of MTN’s network in the region.
The need to upscale the shares and business of Cell C began earlier this year with the announcement of its R194 million debt. Before this, Cell C had issues with repaying an R6 billion debt to investors and also the unpaid R393 million debt.
The accumulation of this debt, amidst other challenges, led to the business dealings with MTN. In a bid to severe the proposed bid and help Cell-C sail turbulent water, MTN SA signed an agreement to host Cell C services.
See Also: Cell C South Africa to Sell Assets over $596M Debt
In a statement released by MTN, the telco noted that the roaming agreement aligns with its strategy to develop wholesale business in the country. It also creates a competitive edge for both companies as well as a sustainable telecommunication industry.
Also, the agreement between the duo will bring a substantial cost reduction to MTN and a platform to discuss the recapitalization with Cell C.
It has also increased the market share of both telcos while plummeting the shares of Telkom by 5%.
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