SUBSIDIARIES
 
CELL C
 
History
 
Cell C was formed by Saudi Oger and CellSAf, its initial indirect 54% and 40% shareholders, to participate in the tender issued by ICASA for a digital GSM 900 and 1800 dual band mobile license in South Africa. Cell C received an operating license in June 2001, followed by a spectrum license in August 2001, each for an initial 15-year term and with an option to renew. In November 2001, Cell C completed the initial implementation of its core network. Cell C also entered into a national roaming agreement with Vodacom that enabled it to route calls over Vodacom's national GSM 900 network. Later that month, Cell C launched full commercial operations. In July 2003, Cell C began rolling out community service telephones, or CSTs, in line with its license obligations.
 
   
Operational review
 
Cell C, in which Oger Telecom owns a 75% indirect shareholding, offers mobile communications services to pre-paid and post-paid customers in South Africa with approximately 11% market share as of 31 December 2007. Cell C also offers CSTs to underserviced areas across South Africa. Cell C had approximately 5.1m million customers (including CSTs), of which three quarters were pre-paid, one quarter post-paid customers as of 31 December 2007. Cell C revenues¹ were R7.5bn with an EBITDA¹ of R1.0bn as of 31 December 2007.
Note: (1) Excluding Virgin Mobile South Africa (VMSA)
 
   
Shareholder Structure
 
75% indirect ownership by Oger Telecom Ltd.; and the remaining 25% by CellSaf
 
   
Link
 
 
   
   
Virgin Mobile South Africa
 
   
History and overview
 
In December 2005, Cell C reached an agreement with the Virgin Group to launch a service provider through a 50/50 joint venture (JV), Virgin Mobile South Africa (VMSA). Cell C believes that the joint venture will enhance its offering by targeting the upper end of the telecommunications market, where Cell C has traditionally had the lowest penetration, and by capitalizing on the Virgin brand, which is seen as one of the premium brands in South Africa. As compared to Virgin's youth/pre-paid presence in most other countries, in South Africa the brand is associated with Virgin Atlantic, Virgin's international airline, and a range of exclusive sports clubs (Virgin Active).
Virgin Mobile JV launched reselling (Virgin product) operations in the second quarter of 2006. Cell C provides all network services to the JV, as JV is providing own IT infrastructure. VMSA has own billing, customer care, and ERP.
 
   
Shareholder Structure
 
50% : 50% JV between Cell C and Virgin Mobile