Cell C claims to have lost revenue market share due to MTRs

Mergers, Acquisitions and Financial Results

South African wireless operator Cell C has revealed that its revenue market share in the country has declined since 2010, when telecoms regulator the Independent Communications Authority of South Africa (ICASA) first introduced mobile termination rate (MTR) regulations, BusinessTech reports. According to documents submitted to the South Gauteng High Court in Johannesburg, Cell C has claimed that its service revenue market share in the period June-October 2013 stood at 10%, down from 10.3% in December 2010, while its larger domestic rivals MTN and Vodacom continue to hold a combined 90% of total revenues in the South African mobile market. Further, Cell C argued that revenue market share is a better indicator for sustainability in the mobile industry than subscriber market share ‘because operators require a significant upfront investment and ongoing investment for a network, IT billing systems, customer care, distribution points, sustainable channel partners, brand and customer retention’; these investments would only be recovered by a sustainable scale level, of approximately 20%-25% revenue market share, Cell C said.