LONDON-United Kingdom-based mobile virtual network operator Virgin Mobile Group plc reported plans to extend its brand into South Africa through a 50/50 venture with South African GSM network operator Cell C.
The Virgin Mobile-branded enterprise will operate as an independent service operator on the Cell C network and trade as Virgin Mobile South Africa. The joint venture is expected to launch is the first half of 2006.
“We are pleased to be bringing an international brand of the stature of Virgin Mobile to further enhance competition in South Africa,” said Cell C Chairman Talaat Laham. “It is testimony to the quality of our network that this premium telecommunications brand has chosen Cell C as its partner.”
Cell C launched in 2001 and as of June 2005, had 2.5 million subscribers, or about 11-percent market share. The company aims to bump its market share up to 20 percent by 2007. It competes in a market dominated by larger carriers Vodacom and Mobile Telephone Networks.
“South Africa is a key market for Virgin and a country that I personally love very much,” said Sir Richard Branson, majority stockholder of Virgin Mobile. “Our partnership with Cell C will bring a new approach to the mobile market and will be a refreshing alternative from the bland offerings of other players. I am looking forward to coming to South Africa to launch this exciting new business next year.”
Virgin Mobile already offers MVNO services in a number of international markets, including the United States, United Kingdom, Canada and Australia.
