This article was originally published on The Daily Vox.
Before last week’s parliamentary portfolio committee meetings on over-the-top (OTT) services regulation, Cell C released a statement by its CEO Jose dos Santos that said that “Vodacom and MTN have declared war on consumer interests” in a bid to maintain “their stranglehold on a vital artery feeding [South Africa]’s economic and social future”. But why is Cell C alone among the major networks on the side of unregulated OTTs? STUART LEWIS tries to figure it out.
Founded in 2001, seven years after its two biggest competitors, Cell C is still largely a new kid on the block. However, in its stand against the regulation of OTT services like Whatsapp, it has drawn a line in the sand, with Vodacom and MTN on one side and itself, OTTs and the South African consumer on the other. To understand why it makes perfect sense for Cell C to do this, you have to understand the industry that it is operating in.
The South African mobile market is divided into two kinds of operators: those that own infrastructure, and those that piggyback off of infrastructure built and owned by other companies. The four largest players in the country are, in order, Vodacom, MTN, Cell C and Telkom – all of whom built and maintain their own real world network of cellphone towers and other connections.
Read the full article here.