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Home News & Reports

January 27, 2025

South Africa: Blue Label Telecoms Secures ICASA Approval For Cell C Licence Transfer
News & Reports
January 27, 2025

by Staff Writer BMA
January 27, 2025
in News & Reports, Telecommunication

South Africa’s Blue Label Telecoms is celebrating the approval of mobile operator Cell C’s licences to its subsidiary, The Prepaid Company.

In a statement to shareholders, the company says: “Blue Label is pleased to announce Cell C has successfully obtained the approval from the Independent Communications Authority of South Africa (ICASA) for the transfer of control of the relevant telecommunications licences held by Cell C to The Prepaid Company, a wholly-owned subsidiary of Blue Label.”

According to Blue Label, although the licences will continue to be held by Cell C, ICASA’s approval to transfer control of Cell C’s licences was required because a transfer of power would be deemed to occur when the shareholding held by The Prepaid Company, exceeds 50% of the issued share capital in Cell C.

“This approval represents a significant milestone for Blue Label and a crucial step in advancing its strategy to obtain control over Cell C,” says the firm.

In a statement, Cell C says this development is a critical step in its strategic growth journey, ensuring the alignment of its shareholder structure with long-term objectives of profitability and sustainability.

As part of this adjustment, Cell C will continue to operate as a mobile network operator, retaining full control of its spectrum and delivering uninterrupted services to its customers.

According to the mobile operator, the regulatory process complied with section 13 and section 31 of the Electronic Communications Act (ECA), with approvals required from ICASA and the Competition Commission.

“While ICASA’s approval updates Cell C’s Electronic Communications Services and Electronic Communications Network Services licence ownership structure, the transaction remains subject to ongoing assessments by the Competition Tribunal. These processes, expected to conclude in early 2025, will evaluate the competitive effects of the transaction within the telecoms market,” says the firm.

It adds that the adjusted shareholding empowers The Prepaid Company to provide strategic direction as Cell C continues its mission to deliver innovative solutions and superior customer service.

“Importantly, Cell C remains a proudly empowered company, with 34.41% ownership by historically disadvantaged groups in its overall ownership structure.

“Cell C remains committed to its customers, employees, and stakeholders. This milestone is a testament to our focus on building a sustainable and resilient business while maintaining our position as a transformative player in the South African telecommunications landscape.”

Last year, ICASA convened public hearings on the applications for transferring control of the I-ECNS and I-ECS licences from Cell C to The Prepaid Company.

Blue Label has a non-controlling 49.5% stake in Cell C and is looking to get an additional 4.04% stake via The Prepaid Company to get control of South Africa’s fourth-biggest mobile operator.

Tags: Blue Label TelecomsCell CIndependent Communications Authority of South Africa (ICASA)The Prepaid Company
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