HumanIPO reported yesterday Cell C had been connected with helping FNB become a mobile virtual network operator (MVNO), with neither party confirming or denying conversations had taken place.
But Duncan Arthur, an independent payments, mobile and African banking professional, told HumanIPO FNB would have little to gain from choosing Cell C.
“This potential FNB-Cell C tie-up sounds like a non-sequitor to me. Cell-C punch above their weight, but their CEO (Alan Knott-Craig) is on record as saying their future lies in acquiring or being acquired,” Arthur said.
“All of the big banks have explored MVNO licences and have gone that route. The banks can basically do what they want in terms of dipping their toes and exploring a new world. What does Cell-C have that FNB wants?”
FNB already have a telecommunications licence and HumanIPO understands they have held talks with all of South Africa’s major networks.
Arthur also pointed out that while Cell C’s network is growing, they still leverage a large amount off Vodacom’s network where they do not have great coverage.
Arthur added: “Either we don't have the full story or there is no story in my opinion.”