South Africa's Cell C has announced that it has connected two million subscribers by 1st August 2003, in its second year – five months ahead of projections.

Over the past year the company has achieved an estimated 32% of the industry’s net pre-paid growth and 38% of its net post-paid growth. Cell C further estimates that 45% of its growth comes from churn from its competitors. The rapid growth trend mirrors the company’s first year, when subscriber numbers exceeded projections by 20%.

Significantly, 55% of Cell C’s 2003 overall growth has come from entirely new entrants to the market, causing the company to review its predictions of total market size at market saturation. Expectations are for 19 million active subscribers by 2008 – up from projections of 17 million made in 2002.

Speaking at a press briefing, Cell C chairman and CEO Talaat Laham said: “It’s gratifying to know that Cell C has contributed to the overall expansion of the cellular market. It shows that we’re doing the job for which we were licensed – to increase competition, increase the value of the telecommunications sector, and make cellular telephony more available to more South Africans.”

Laham confirmed that while Cell C’s vision of over 25% market share has not changed, “it will be 25% of a bigger market than we formerly estimated.” Currently, the company estimates that it has over 10% of the active market.

To service the expected greater growth of Cell C’s own subscriber base, the company has revised its network roll-out plans from 1,900 to 2,350 live base stations by 2005. More than 1,100 base stations are already live, carrying 50% of Cell C’s traffic. The remaining traffic is currently catered for within Cell C’s 15-year domestic roaming agreement.

Cell C’s black empowerment focus remains strong. It has an undilutable 40% black equity ownership, through CellSaf – a consortium of 30 black empowerment companies and trusts. More than 85% of Cell C’s staff are from previously disadvantaged backgrounds.

Around half its staff are women. Of its R3,6 billion South African procurement spend, more than R1,3 billion has been spent with black empowerment companies.

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