Cell C also had to acknowledge that it could not outspend Vodacom and MTN on network investment. "The industry spends on the order of R20 billion per year [on capital expenditure]," said Mahomed. “Now you've got 5G coming on stream. The latest estimate is that it's going to cost the industry in excess of R200 billion to roll out 5G." According to Mahomed, this is simply not sustainable and the traditional mobile network operator (MNO) model is coming to an end. "If you look at where MNOS are, they're all going into financial services, they're all going into content," he stated. "You've got to understand that the industry is at a crossroads. You cannot sustain four competitors in this industry." Mahomed said that they want to give their customers the best quality networks available. "To be frank, we don't have the capability to do that," he said. "If you gave me R20 billion per year for the next 10 years I sill won't catch up with Vodacom and MTN. It's just not possible." Source: https://mybroadband.co.za/news/business-telecoms/385106-how-cell-cs-deals-with-vodacom-and-mtn-will- make-it-profitable.html Accessed: 08/02/2021

Cell C also had to acknowledge that it could not outspend Vodacom and MTN on network investment. "The industry spends on the order of R20 billion per year [on capital expenditure]," said Mahomed. “Now you've got 5G coming on stream. The latest estimate is that it's going to cost the industry in excess of R200 billion to roll out 5G." According to Mahomed, this is simply not sustainable and the traditional mobile network operator (MNO) model is coming to an end. "If you look at where MNOS are, they're all going into financial services, they're all going into content," he stated. "You've got to understand that the industry is at a crossroads. You cannot sustain four competitors in this industry." Mahomed said that they want to give their customers the best quality networks available. "To be frank, we don't have the capability to do that," he said. "If you gave me R20 billion per year for the next 10 years I sill won't catch up with Vodacom and MTN. It's just not possible." Source: https://mybroadband.co.za/news/business-telecoms/385106-how-cell-cs-deals-with-vodacom-and-mtn-will- make-it-profitable.html Accessed: 08/02/2021

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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