Pyramid Research, a research firm says France Telecom -Orange will need to acquire a South African to help it set up shop as a mobile virtual network operator and Cell C is highly targeted.
Another firm that may be acquired in case Cell C doesn’t agree to such terms could be Telkom-owned mobile operator 8ta or Neotel, a fixed line operator.
According to Pyramid Research: “Each of these possible acquisitions would clearly need different levels of engagement and different strategies, with Cell C being closest to France Telecom’s core business and comfort zone.”
Orange last month launched Orange Horizon in South Africa in a move to expand operations in countries where it is not present and Southern Africa is on its target list. France Telecom-Orange is active in nearly 20 countries in Middle East and East Africa and some parts of West Africa with over 70 million customers.
South Africa is the firm’s much-needed ground for the firm to spread across Africa like it did in the UK with Everything Everywhere, a mode of operation analysts argue will emerge on the continent from one of its most advancing economies like South Africa or Kenya.