In South Africa, MTN helps keep Cell C’s customers connected. Cell C helps banks and retailers become mobile operators without building their own networks. Now MTN wants more of that business for itself.
What’s happening? In a trading update published on Monday, MTN, Africa’s largest telecom operator, said it failed to agree with Cell C, the South African mobile network operator, on certain terms of their longstanding commercial relationship. MTN didn’t disclose what the disagreements were, but said both companies would work to resolve them under their existing agreement. Cell C confirmed that the deal runs until 2032 and that existing terms remain unchanged, according to local publication TechCentral.
Explain like I’m new here. Unlike MTN and Vodacom, Cell C no longer operates its own radio network. Instead, it relies on infrastructure-sharing agreements with both companies to provide nationwide coverage. Under its arrangement with MTN, Cell C gets access to network infrastructure, while MTN gets access to some of Cell C’s licensed spectrum, the radio frequencies used to carry mobile signals.
Here’s where it gets interesting: Cell C has built a growing business serving mobile virtual network operators (MVNOs), companies such as Capitec Connect that sell mobile services without operating their own networks. In its FY2026 results, Cell C estimated that it hosts 80–85% of South Africa’s MVNO market. Its wholesale revenue grew 20% to R1.76 billion ($107.2 million) in the year to May, supporting 5.71 million MVNO lines.
But MTN wants a bigger slice of that market. It wants to become South Africa’s leading MVNO wholesaler and is introducing new wholesale pricing arrangements to compete for customers.
Between the lines: MTN is both Cell C’s infrastructure partner and a direct competitor for wholesale customers. That creates an uncomfortable relationship between the two operators. Cell C needs access to MTN’s infrastructure to serve its customers, while MTN earns revenue from that arrangement even as it competes for the same business.
Neither company has disclosed the exact reason for the disagreement.
Zoom out: Cell C’s strategy of relying on other operators’ networks has reduced infrastructure development and maintenance costs, letting it focus on acquiring customers and growing its wholesale business. But the model also makes the terms of its network agreements critical to its profitability.
For now, both companies say customers won’t experience service disruptions. But Cell C has to answer questions about how it can protect its fast-growing wholesale business as the company supplying its network competes more aggressively for the customers it serves.