JOHANNESBURG, South Africa-A year after going live, South African network operator Cell C announced it has managed to acquire 1 million subscribers on its network. The operator has also constructed 700 live base stations with a plan to have 1,500 in place by June next year.
The delay in the initial target of 1,800 base stations by the end of the first year has been blamed on the difficulty of site acquisition in the country.
Talaat Laham, chief executive and chairman of Cell C, said: “It’s becoming harder to acquire permits for suitable sites and the process of finalizing site acquisition is a lengthy one.”
Laham said the company also revised its initial estimates of capturing 20 percent of the market to 25 percent of the new growth. In terms of funding, Cell C is said to be on track, with chief investor Saudi Oger providing US$150 million of the equity and an additional US$100 million to be provided by local investors Cellsaf.
“The company’s business plan shows we will be cash positive in 2005, and profitability will be positive in 2004. The breakeven point gets closer with each additional subscriber signed on,” Laham added.
Cell C also announced that it will be ready with General Packet Radio Service (GPRS) early in the new year, although the company is more concerned with the issue of content and applications.
