2001-06-11

Cell C will finally be allowed to start its GSM 1800 network in South Africa after rival bidder Nextcom withdrew from a judicial review into the awarding of the license. The latest developments in the saga mean that South Africans will now have Cell C competing with Vodacom and MTN by the end of the year.

The judicial review was ordered by the High Court last year after Nextcom complained that government officials had tried to influence the selection process for the licence that was eventually awarded to Cell C.

Cell C and Nextcom reached an out-of-court settlement, reportedly between R50-R80 million (around $6.3 - $10 million)

Throughout the past two years, Nextcom were vocal critics of the manner in which the then regulator, the SA Telecommunications Regulatory Authority (Satra), handled the licensing process.

Judge Hekkie Daniels was about to deliver his verdict on whether the Cabinet had unfairly interfered with the independent process of awarding the licence when Cell C advocate Chris Loxton told the court that the judgment would be "academic" as the two companies had settled out of court.

Nextcom had agreed to withdraw its application and that it waived all rights of action and claims relating to the entire process of awarding the licence to the Saudi-backed Cell C.

The confidential agreement, parts of which were blacked out when handed to the court, was signed on behalf of Nextcom by Kelebonye.

Nextcom is a consortium that is 60% owned by local empowerment groups, which include Glass's Union Alliance Media (UAM), and 40% controlled by Hong Kong-based Distacom.


See Third South African Cellular License Story

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