EP.03 | Jorge Mendes on Cell C’s Strategy for a Sustainable, Customer-Centric Future

The TechAfrica News Podcast

In this episode, Jorge Mendes, CEO of Cell C, speaks with Akim Benamara, Chief Editor and Founder of TechAfrica News, about the company’s ambitious turnaround plan.
In an industry marked by rapid technological change and fierce competition, South Africa’s telecom sector faces complex challenges—from constrained cash flows to the persistent digital divide across the continent. For Cell C, a key player in this market, overcoming these challenges requires more than quick fixes. So, how does Cell C navigate these hurdles while staying true to its customers and long-term vision?

About our Guest - Jorge Mendes
Jorge Mendes brings nearly 30 years of telecom experience, known for people-centric leadership and building high-performing teams. Before Cell C, he led consumer business at Vodacom South Africa, driving market share growth and partnerships. He holds executive credentials from Harvard Business School and Unisa Graduate School of Business Leadership.

Cell C’s Turnaround: Culture, Sustainability, and Strategic Agility
Mendes reflects on a transformative year focused on sustainability amid significant cash flow and technology challenges. Central to this is shaping a strong culture based on transparency, honesty, integrity, and simplicity

“We've always wanted to have the best culture in the country. We've been deliberate in building a good team that fits our value system. We also had to structure our technology setup, especially network quality.”
— Jorge Mendes, CEO, Cell C

Lean Technology Strategy and Customer-Centric Innovation
Cell C’s technology approach prioritizes agility and partnerships over heavy infrastructure investment. By leveraging networks from providers like MTN and Vodacom, Cell C maintains competitive quality with a “fundamentally different” CapEx model.

Customer-centricity drives both core services and innovation. Mendes insists on excelling at “bread and butter” voice and data offerings while exploring new revenue streams through partnerships, especially in financial services.

MVNOs and Market Positioning: Integration Over Wholesale
Cell C’s Mobile Virtual Network Operator (MVNO) strategy moves beyond traditional wholesale models to deep, integrated partnerships tailored to partners’ industry needs. Mendes critiques past MVNO failures due to lack of integration, asserting that “when you align that with personalization, you’re onto something very special.”

Driving Digital Inclusion and Affordability
Committed to bridging Africa’s digital divide, Cell C invests in connectivity for underserved communities, digital literacy programs, and supports emerging technologies like Starlink. Affordability efforts focus on lowering communication costs and increasing access to modern devices. Collaborations with government and industry aim to phase out older technologies in favor of 4G/5G, with potential subsidies and tax reforms.

Pragmatic Views on 5G, Fair Share, and New Revenue Models
Mendes offers a realistic assessment of 5G’s role, noting limited consumer monetization but potential niche enterprise applications like automation in mining. A final priority is product clarity. Mendes also wants to eliminate ambiguous bundles and hidden costs that confuse customers.

This episode was filmed on: 12th November 2024

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Chapters

1. EP.03 | Jorge Mendes on Cell C’s Strategy for a Sustainable, Customer-Centric Future (00:00:00)

2. Reshaping Cell C’s Culture and Strategy for Long-Term Sustainability (00:01:03)

3. Customer Centricity and New Revenue Streams (00:03:05)

4. Cell C’s Unique Structure and Competitive Advantages (00:05:03)

5. Digital Transformation and Tech Accessibility in Africa (00:09:34)

6. Progress on Affordability and Accessibility in Telecom (00:13:31)

7. MVNO Strategy and Market Positioning (00:15:24)

8. Enterprise Opportunities and 5G Monetization Challenges (00:21:44)