South Africa’s third-largest mobile operator, Cell C, is successfully executing a major shift in its business strategy. Moving beyond merely selling mobile services directly to consumers, the company is transforming into a platform-led provider, capitalizing on businesses that want to sell mobile services using Cell C’s network.
The Wholesale and MVNO Boom
According to Cell C’s latest financial results, a core driver of Cell C’s turnaround is its asset-light, partnership-led approach. By leveraging its wholesale and Mobile Virtual Network Operator (MVNO) model, Cell C allows other brands to offer mobile services to their own customer bases without needing to build their own expensive radio infrastructure.
This segment has become a massive engine for growth:
- Market Dominance: Cell C currently accounts for a massive 80% to 85% of South Africa’s total MVNO market.
- Subscriber Surge: By the end of May 2026, the number of subscribers using MVNO services on its network reached 5.7 million—a sharp 27.3% jump from 4.5 million the previous year.
- Revenue Impact: The wholesale division generated R1.8 billion ($111.8 million) in FY26, representing a 20% year-on-year growth. The company anticipates this double-digit growth to continue into FY27.
FY26 Financial Highlights
Following its restructuring and listing on the Johannesburg Stock Exchange (JSE) in November 2025, Cell C’s financial health has improved significantly.
| Metric | FY26 Results | Year-on-Year Growth |
| Total Revenue | R12.64 billion ($785.2 million) | + 13.5% |
| Adjusted EBITDA | R2.4 billion ($147.8 million) | + 16.9% |
| Net Debt | R2.02 billion ($125.5 million) | Down from R5.7 billion |
| Direct Subscribers | 8.9 million | + 17.1% |
Consumer Business and Network Traffic
While wholesale is accelerating, the company’s direct-to-consumer businesses…
Source link
Read Full Article by Tapiwa Matthew Mutisi at innovation-village.com
Source link
