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Cell-C is failing to Pay Up its R400 Million Bill to MTN & MTN is writing off some of that Money

Cell-C is failing to Pay Up its R400 Million Bill to MTN & MTN is writing off some of that Money

An embattled Cell C is struggling to pay its bills – which is starting to hurt MTN, as is evident from the latter’s half-year results.

In May last year, Cell C began using MTN’s network, especially in smaller cities and rural areas where it doesn’t have its own coverage – after previously roaming with Vodacom. The MTN deal saw Cell C’s 4G coverage increase from 33% to 80% of its clients.

But Cell C, which has a debt burden of some R6 billion (with interest rates as high as 17%), has now fallen behind on payments for these services.

It left MTN with an unpaid bill of R393 million over the past six months. On Thursday, MTN announced that it has written off R211 million of the amount, and is now “evaluating a sustainable solution to the network roaming agreement with Cell C”.

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