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MTN & Cell C in Court Over Ad

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MTN  is considering legal action for an advertising campaign from Cell C  which criticizes MTN for taking  the Independent  Communications Authority of South Africa ( ICASA), to court over its recently released ” call terminations regulations 2014.

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The campaign did not sit well with MTN and the company is now considering legal action. The campaign from Cell C creates the impression that MTN is fighting against lowering call rates, and that MTN are funding the legal action through using the company’s network.

Cell C has also been active on social media, twitter and facebook, making statements such as  “are the giant cellular networks to greedy?” and “Do you feel that big cellular networks are making obscene profits?”

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Zunaid Bulbulia Chief Executive Officer (CEO) MTN said the new MTR regulations hinder South Africa’s economic development and constitute “regulatory  attack”.

Bulbulia added that the case was “regrettable” and legal action was the only open option in regards to the regulations, as attempted discussions with the regulator (ICASA) was unsuccessful.

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Cell C on the other hand through its chief legal officer, Graham Mackinnon said they do not believe that there is a basis for any legal action, but they are prepared to meet any claim that MTN may bring.

Fusi Mokoena, general manager for commercial legal at MTN South Africa said yesterday that they are exploring their options.

MTN formerly M-cell, is a South African based multinational mobile telecommunications company, with its head quarters in Johannesburg, it operates in most parts of Africa Europe and Middle East.

Cell C founded in November 2001, is owned by 3C Telecommunications, it is South Africa’s third cell network after Vodacom and MTN, the company also has its headquarters in South Africa.

 

 

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