Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Eskom has a R1.20/kWh offer for bitcoin miners

      Eskom has a R1.20/kWh offer for bitcoin miners

      2 October 2026
      Meta's smart glasses are officially coming to South Africa - Mark Zuckerberg

      Meta’s smart glasses are officially coming to South Africa

      2 October 2026
      Usaasa consults on universal access as its abolition stalls

      Usaasa consults on universal access as its abolition stalls

      2 October 2026
      Frogfoot plots acquisitions as Octotel and MetroFibre weigh a merger - Shane Chorley

      Frogfoot plots acquisitions as Octotel and MetroFibre weigh a merger

      2 October 2026
      Home affairs pulls the plug on the green ID book - Leon Schreiber

      Home affairs pulls the plug on the green ID book

      1 October 2026
    • World
      BMW restructuring plan bets on AI and new models

      BMW restructuring plan bets on AI and new models

      1 October 2026
      OpenAI's rogue agent problem keeps getting bigger - Sam Altman

      OpenAI’s rogue agent problem keeps getting bigger

      28 September 2026
      The new battle over the desktop

      The new battle over the desktop

      23 September 2026
      AMD is now worth a trillion dollars - Lisa Su

      AMD is now worth a trillion dollars

      22 September 2026
      Anthropic weighs new model launch to blunt OpenAI's Astra surge - Anthropic CEO Dario Amodei and OpenAI CEO Sam Altman

      Anthropic weighs new model launch to blunt OpenAI’s Astra surge

      21 September 2026
    • In-depth

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
    • TCS
      Lexi Novitske, general partner at Norrsken22, on the TechCentral Show

      TCS | Norrsken22’s Lexi Novitske on how China is winning African tech

      1 October 2026
      TCS | Dominic White and Adam Ely on AI agents going rogue

      TCS | Dominic White and Adam Ely on AI agents going rogue

      29 September 2026
      TCS | Octotel's Trevor van Zyl on the fibre merger question

      TCS | Octotel’s Trevor van Zyl on the MetroFibre merger question

      16 September 2026
      Meet the CIO | Shoprite's Chris Shortt on what a supermarket becomes

      Meet the CIO | Shoprite’s Chris Shortt on what a supermarket becomes

      9 September 2026
      Rubicon's EV charging network is profitable - and growing fast - Watts & Wheels

      W&W | Rubicon’s EV charging network is profitable – and growing fast

      8 September 2026
    • Opinion
      South Africa's next energy crisis is in the accounts department - Craig Holmes

      South Africa’s next energy crisis is in the accounts department

      29 September 2026
      The steam engine lesson AI doomsayers keep missing - Sam Clarke

      The steam engine lesson AI doomsayers keep missing

      28 September 2026
      Regulating AI: apply the laws we have first - Dirk de Vos

      Regulating AI: apply the laws we have first

      21 September 2026
      What Revolut can and cannot take from South Africa's banks - Pambos Soteriades

      What Revolut can and cannot take from South Africa’s banks

      15 September 2026
      The end is nigh, and the shares go on sale in October - Duncan McLeod

      The end is nigh, and the shares go on sale in October

      14 September 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Publishared
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Opinion » Duncan McLeod » Cell C? 8ta da!

    Cell C? 8ta da!

    By Duncan McLeod17 October 2012
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    Cell C CEO Alan Knott-Craig told me in an interview about three weeks ago that SA’s telecommunications industry was “not sustainable” and that a wave of consolidation was coming, probably within the next six months.

    That the former Vodacom boss, who took the reins at Cell C earlier this year, wants to shake up SA’s telecoms sector is clear. He wants to carve out a much bigger slice of the market for Cell C — up to 25% from 13% now — and he’s prepared to tear up the rule book to achieve his goal. So far, that’s meant slashing prices and removing the tariff complexities for which the industry is (in)famous.

    His game plan is far bigger than just upending tariffs, though. When we spoke, Knott-Craig said he expected smaller telecoms players to reach out to one another in an effort to build scale to take on industry giants MTN and Vodacom. He specifically named Cell C, Neotel and Telkom, along with its mobile arm, 8ta, and hinted he was already involved in talks that could spur consolidation in the sector.

    “Cell C, 8ta, Neotel and Telkom are four small players in the market — I separate 8ta and Telkom because I can — and they need scale,” he told me. “Who merges with whom? I don’t know. I think that will pan out as it pans out.”

    How might this consolidation really happen? It’s an intriguing question.

    Even if Telkom were able to muster government support to buy Cell C (far from a given), would the competition authorities allow it and, if they did, could the company afford to do the deal?

    Looking at it the other way around, could Cell C raise the billions it would need to buy a stake in Telkom? Why would it want to buy into a troubled incumbent fixed-line operator and, again, would government, which has already sent Korea’s KT Corp packing this year, allow it?

    Perhaps Cell C would be interested in buying (rescuing?) 8ta, leaving Telkom as a wire-line player only. The country’s newest mobile operator is hurting its parent financially — 8ta is “busy drowning Telkom”, in Knott-Craig’s words — but the fixed-line operator arguably can’t do without a mobile arm. Mobile is a key ingredient in its broadband strategy.

    Though an equity transaction involving Cell C and Telkom/8ta appears unlikely (but not impossible), the opportunity for a closer working relationship makes sense. Of all of SA’s operators, Telkom has by far the largest fibre-optic backbone network, a valuable asset in wiring up base stations for fourth-generation (4G) mobile broadband technology. It also has access to a huge chunk of highly prized radio frequency spectrum that is well suited to 4G.

    Cell C, on the other hand, has a retail and channel presence that 8ta has struggled to build. Though it’s not as strong as MTN and Vodacom in this regard, Cell C certainly has the people, processes and systems in place to support end users, an area where 8ta has come up short. Together, the companies have more base stations than Vodacom, an asset which, if leveraged properly, especially in combination with Telkom’s 4G spectrum assets, could give both parties a strong competitive advantage.

    How the talks now taking place will reshape the industry is anyone’s guess. But that Knott-Craig wants to shake up the sector — and do it quickly — is now evident to everyone.

    “There’s no time to do this organically anymore, ” he told me. “Everyone recognises the status quo is not sustainable.”  — (c) 2012 NewsCentral Media

    • Duncan McLeod is editor of TechCentral; this column is also published in Financial Mail
    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    8ta Alan Knott-Craig Cell C MTN Neotel Telkom Vodacom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleOpen Microsoft, closed Apple
    Next Article Is the PC era over?

    Related Posts

    Frogfoot plots acquisitions as Octotel and MetroFibre weigh a merger - Shane Chorley

    Frogfoot plots acquisitions as Octotel and MetroFibre weigh a merger

    2 October 2026
    How Cell C shaped Blu Label's executive pay - Brett Levy Mark Levy

    How Cell C shaped Blu Label’s executive pay

    1 October 2026
    Capitec's non-bank bet is paying off, big time

    Capitec’s non-bank bet is paying off, big time

    30 September 2026
    Company News
    Huawei sets out its vision for intelligent government at GovTech 2026

    Huawei sets out its vision for intelligent government at GovTech 2026

    2 October 2026
    A simple guide to modern laptop processors for small businesses - Incredible

    A simple guide to modern laptop processors for small businesses

    2 October 2026
    Cloud and AI won't deliver value on their own, executives warn

    Cloud and AI won’t deliver value on their own, executives warn

    1 October 2026
    Opinion
    South Africa's next energy crisis is in the accounts department - Craig Holmes

    South Africa’s next energy crisis is in the accounts department

    29 September 2026
    The steam engine lesson AI doomsayers keep missing - Sam Clarke

    The steam engine lesson AI doomsayers keep missing

    28 September 2026
    Regulating AI: apply the laws we have first - Dirk de Vos

    Regulating AI: apply the laws we have first

    21 September 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Eskom has a R1.20/kWh offer for bitcoin miners

    Eskom has a R1.20/kWh offer for bitcoin miners

    2 October 2026
    Huawei sets out its vision for intelligent government at GovTech 2026

    Huawei sets out its vision for intelligent government at GovTech 2026

    2 October 2026
    A simple guide to modern laptop processors for small businesses - Incredible

    A simple guide to modern laptop processors for small businesses

    2 October 2026
    Meta's smart glasses are officially coming to South Africa - Mark Zuckerberg

    Meta’s smart glasses are officially coming to South Africa

    2 October 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}
    🇿🇦 Sign up to the TechCentral newsletter