Blue Label Telecoms has received the green light from the Competition Commission to assume control of the mobile operator Cell C, marking a significant development in South Africa’s telecommunications landscape.
Previously, Blue Label, through its wholly owned subsidiary, The Prepaid Company (TPC), held a minority stake of less than 50% in South Africa’s third-to-be-licensed mobile operator.
The approval from the Competition Commission comes with certain conditions attached. The regulator stated in a statement on Tuesday that it recommended the merger’s approval by the Competition Tribunal, subject to conditions aimed at mitigating concerns related to information exchange. Additionally, conditions have been set to ensure the continued use of specific prepaid airtime distribution channels for a certain period following the merger, though specifics were not provided.
In addition to the approval from the Competition Commission, Blue Label, through TPC, has submitted an application to the communications regulator Icasa seeking approval to transfer Cell C’s spectrum licenses to TPC.
Presently, Blue Label holds a non-controlling 49.5% stake in Cell C. The company intends to acquire an additional 4.04% stake in Cell C, bringing its total ownership to 53.5%.
Reports from August 2023 initially revealed Blue Label’s intentions to acquire control of the telecoms operator, a move that has now received regulatory approval.
Cell C emphasized that it would retain full control of its spectrum under the new operating model and would continue to operate as a licensee providing mobile services to its customer base as a mobile network operator, as stated in a December statement.
The approval granted to Blue Label Telecoms to take control of Cell C signifies a significant milestone in the South African telecommunications sector, paving the way for potential enhancements in services and offerings to consumers.
