Cell C Finds New Growth Engine in Wholesale Network Services

South Africa’s third-largest mobile operator, Cell C, is charting a course beyond direct consumer subscriptions with its wholesale network services becoming a key growth driver. The company’s latest financial results show significant expansion in this area, signaling a strategic shift towards an asset-light, partnership-led business model.

Wholesale Business Soars

Cell C’s wholesale revenue jumped 20% year on year, with 5.7 million subscribers now accessing services through its network by the end of May 2026. This segment generated R1.8 billion ($111.8 million) in revenue for FY26 and holds an estimated 80%-85% share of South Africa’s MVNO market.

Financial Highlights

• Total revenue: R12.64 billion ($785.2 million), up 13.5%
• Adjusted EBITDA increased 16.9% to R2.4 billion ($147.8 million)
• Direct subscribers reached 8.9 million, a 17.1% increase

Strategic Shift Underway

Cell C’s CEO Jorge Mendes noted that the company has moved from recovery towards growth following its restructuring and listing on the Johannesburg Stock Exchange in November 2025. The asset-light model allows Cell C to earn revenue by providing network infrastructure to other brands, which market mobile services under their own names.

Future Outlook

Cell C expects double-digit wholesale revenue growth to continue as it enters FY27 with a stronger balance sheet and lower debt levels. While regulatory changes and competitive pressures remain challenges, the company is well-positioned to capitalize on rising demand for network capacity in South Africa’s evolving telecom landscape.

What makes Cell C’s strategy particularly noteworthy is its focus on enabling other businesses rather than competing directly with established players—a smart approach for a smaller operator seeking sustainable growth in a competitive market.

Tags: south-africa, mobile-network-operators, wholesale-services, digital-transformation, telco