Cell C to spend billions on 3G network

This article was posted by on Dec 9th, 2009 and filed under News, Top. You can follow any responses to this entry using RSS 2.0. Both comments and pings are currently closed.

Lars Reichelt

SA’s smallest mobile operator, Cell C, plans to spend as much as R5bn in 2010 on new network infrastructure. Much of this money is expected to be used to construct a 3G network capable of delivering broadband at speeds of up to 21Mbit/s.

The company’s move comes at the same time that fixed-line operator Telkom is building a 3G network. Telkom has said it will spend about R6bn over five years building its mobile network, with much of this investment to happen in the next two years.

“We are going to build an HSPA+ 3G network capable of delivering 21Mbit/s throughput,” says Cell C CEO Lars Reichelt, pictured. Until now, the fastest 3G networks in SA have offered speeds of 7,2Mbit/s, so Cell C’s network will represent a three-fold improvement in download speeds.

Reichelt says Cell C is still negotiating with equipment manufacturers for the supply of equipment to build its 3G network. “I can’t say exactly what we’re going to do yet, but we will be making very substantial investments.”

He says Cell C’s planned investment will include spending money on fibre-optic infrastructure to connect its base stations to its backhaul network.

Funding for the network expansion has been raised by shareholders, Reichelt says. All parties are contributing, including CellSaf, Cell C’s black economic empowerment shareholder.

The 3G network will make use of all the frequencies that Cell C has access to. These are the 900MHz, 1,8GHz and 2,1GHz bands. Cell C will be the first network operator in SA to deploy a 3G network at 900MHz, which is seen as better suited to offering broadband services outside the major metropolitan areas.  — Duncan McLeod, TechCentral



  • Mpho Pole

    So, Cell C is spending R6bn at the same time Telkom is spending R4bn on building a network. I welcome competition as much as the next guy but I ‘m really confused as to why the two telco’s can’t get together and exploit the opportunity to save money, spectrum and many other scarce resources.

  • Nebb

    I think the first reason its a bad idea for these two Telco’s to join up is that Telkom and Cell C are direct competitors to one another. A second reason…: cellular providers have gained a foothold in the broadband industry simply because Telkom had previously abused their dominance of the industry and instead of pioneering ahead like they were doing so many years ago, their fat cat mentality has caused them to loose ground.

    Also, just because Telkom decides to into 3G, doesn’t mean it’ll turn out to be a good investment. If the past is anything to go on, I’d say Telkom are going to loose even more ground once Cell C jump aboard and mobile operators start competing harder for business. Combine that with lower data costs and the new undersea cable that has gone live, Telkom has some major catchup to do and throwing billions at it isn’t going to solve their issues.

  • http://Techcentral Mninawa

    Hi Duncan

    My eyes nearly popped out to see that Cell C is investing this amount of money on the network infrastructure. Not long ago there was a talk from you about Cell C in debt and shareholders wanting to bail out. Without dwelling much on my previous point, I think this is the greatest thing to have happened because it shows confidence of the share holders to this market and Cell C as the company. Please keep us updated on the progress of this 5billion development.

  • SUK1R

    At last!!!!!!!!!!!!!!!!! I’ve been waiting for cellc to upgrade to 3g all my life (well, most of my life)

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