On Thursday, 19 September 2024, ICASA will host public hearings to review Cell C’s request to transfer control of its licences to The Prepaid Company (TPC). ICASA published this on a notice in the Government Gazette.

In December 2023, Icasa announced Cell C’s request to transfer its I-ECS, I-ECNS, and spectrum licences to The Prepaid Company (TPC), a Blue Label Telecoms subsidiary and Cell C’s largest shareholder.

On 6 December 2023, Icasa published a notice in Government Gazette No. 49831 regarding Cell C’s applications to transfer its licences.

The notice invited written responses from interested parties within 14 working days. The deadline for submissions was later extended to 22 January 2024, and responses to 12 February 2024.

By 22 January, Icasa received six written submissions, with stakeholders also requesting to make oral presentations.

The deadline for Cell C’s response was extended to 15 March 2024, which was met accordingly.

Public hearings on these applications are scheduled for Thursday, 19 September 2024.

However, Cell C has withdrawn its application to transfer the 10 MHz Lot in the 3500 MHz RFS band from the 2022 Spectrum Auction, so this will not be addressed during the hearings.

All interested parties are invited to the hearings, which will take place as follows:

Date: 19 September 2024
Venue: Courtyard Hotel, Waterfall City, Midrand
Time: 08:30 AM (SAST)

Please also read: GUGU LOURIE: Regulators must protect CellSAf in brawl over Cell C

Blue Label bid for control of mobile operator and its licences could be bad news for empowerment partner

BL Premium

14 January 2024 – 06:14

by GUGU LOURIE

JSE-listed Blue Label Telecoms is embroiled in a dispute with empowerment partner CellSAf over accusations of asset stripping at Cell C.

In short, CellSAf, which has a 25% stake in Cell C, is arguing that Blue Label, which wants to increase its 49.53% stake to a controlling 53.57% interest, is trying to “hijack” the mobile operator.

The bone of contention lies in the proposed transfer of control of Cell C’s telecom licences, including valuable spectrum, to Blue Label’s subsidiary, The Prepaid Company (TPC). Last month, Cell C sought permission for the move from the Independent Communications Authority of South Africa (Icasa).

Not surprisingly, Nomonde Mabuya, director of CellSAf, has has filed a formal objection to this with the telecom regulator.

Mabuya asserts that Blue Label cannot seize absolute control, particularly over the spectrum licence, without engaging other shareholders. The director of CellSAf warned that if the transfer was allowed to go ahead “CellSAf will be left with nothing”.

However, Brett Levy, co-CEO of Blue Label, rejects these claims. He says his company’s bid for a majority stake has been misconstrued. “We are a shareholder of a company, and we are applying for control in the company,” Levy says in response to the allegations.

This is not the first clash between Cell C shareholders.

Back in 2017, CellSAf, led by Zwelakhe Mankazana, lodged a complaint with the Competition Commission, accusing Blue Label and JSE-listed Net1 (now Lesaka Technologies) of orchestrating a takeover bid to secure control of Cell C.

The commission concurred, stating that Blue Label had indeed acquired control of Cell C. “After assessment of the above submissions by CellSAf and engagement with Cell C, the commission has taken the view that there has been an acquisition of control of Cell C by Blue Label,” the Competition Commission ruled.

Fast forward to the present, and the proposed transfer of Cell C’s spectrum and licences has rekindled the battle between shareholders.

Cell C vs CellSaf: Is It A Case Of Goliath Being Favoured By Regulators?

By Gugu LourieJune 10, 201926 Mins Read

Cell C offices in Midrand

The case of Cell C versus its empowerment partner CellSaf has become a David and Goliath battle.

CellSaf, a small lightweight empowerment partner, is battling against a heavyweight opponent backed by three conglomerates – Cell C, JSE-listed tech firm Blue Label Telecoms, and JSE and Nasdaq-listed Net 1 UEPS Technologies (Net 1).

The background to this battle is rooted in 2001 when Cell C launched, and CellSaf was celebrated as a victory for empowerment owning a 40% of the mobile phone operator (which has since shrunk to 7.5% with no benefits to the shareholders).

For CellSaf, however, since then, it has been a litany of battles with Cell C management and original shareholders of the mobile phone operator, Saudi Oger.

With South Africa trying to unravel state capture that has destroyed state-owned entities as private companies facilitate corruption, I remembered a quote by Chief Justice Mogoeng Mogoeng saying the judiciary will never be captured.