Cell C CEO on telecommunications industry outlook

South Africa's telecommunications industry is undergoing a transformation with reports hinting at Elon Musk's potential investment in his former homeland. This shift in the market dynamics has put the spotlight on Cell C, a major player known for its competitive pricing since its inception in 2001. Cell C CEO, Jorge Mendes, recently sat down with CNBC Africa to discuss the company's strategy for a turnaround and future growth. Mendes acknowledged the challenges Cell C has faced over the years but emphasized the company's commitment to reestablishing itself as a consumer champion. To achieve this goal, Cell C has undergone two recapitalizations to address its financial hurdles amounting to a loss of 44 billion. The latest recapitalization aims to redefine the company's business model, focusing on sustainability and growth without the need for heavy capital expenditure. Mendes revealed that Cell C plans to become the largest buyer of technology services, leveraging multi-operator carrier roaming agreements to compete effectively in the market. This strategic approach allows Cell C to offer competitive pricing and deliver value to its customers. The company's competitive advantage lies in its commitment to offering affordable pricing, superior network quality, and customer-centric products. Mendes highlighted the importance of simplifying product offerings and enhancing customer experience to drive consumer engagement. Additionally, Cell C aims to leverage its ecosystem and partner with MVNOs to expand its market presence and provide more options to customers. The growing demand for affordable data services has prompted industry players to explore innovative pricing models and partnerships to lower costs for consumers. Mendes expressed confidence in the industry's ability to reduce data costs and enhance pricing flexibility to meet varying customer needs. He emphasized the importance of collaboration between telcos and other industries, such as banking, to create bundled offerings that benefit consumers. Despite facing intense competition from established players, Mendes remains optimistic about Cell C's future as an independent player in the market. While he acknowledged the possibility of mergers or consolidations in the industry, Mendes reiterated the company's focus on sustainable growth through strategic partnerships and operational efficiency. Moreover, Mendes highlighted the importance of infrastructure sharing and collaboration to improve network efficiency and reduce costs. Addressing concerns about new entrants like Starlink, Mendes welcomed competition and emphasized the need to abide by regulatory standards while embracing technological advancements. The CEO also discussed the role of AI in the telecom sector, emphasizing the importance of responsible AI implementation and workforce development. Mendes underscored the need for proactive training and reskilling initiatives to prepare employees for the evolving job landscape driven by AI and automation. As South Africa's telecom sector continues to evolve, Cell C remains committed to its vision of providing affordable and reliable services while adapting to industry trends and technological advancements.