Alan Knott-Craig back at Cell C, new CEO announced

rpm

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Statement from Cell C Chairman, Mr Mohammed Hariri

I would like to announce the return of Alan Knott-Craig to Cell C. Alan has made a remarkable recovery since he suffered a stroke in November last year and has officially been back at the company since 5 May 2014.

Alan returns to the company in the capacity of Executive Board Member of Cell C. In his new role he will consult and advise on matters not only relating to Cell C but also concerning the Oger Telecom Group. I am very pleased that Alan has agreed to take up this new role, as his wealth of experience in the telecommunications industry is an invaluable asset for the Group at large.

Alan joined Cell C on 1 April 2012 and was instrumental in setting the direction of the company and its success over the past two years. Without his visionary leadership, Cell C would not have been the strong competitor that it is today.

I would also like to take this opportunity to thank Jose Dos Santos and the entire management team of Cell C for their incredible leadership and support during Alan’s absence and for ensuring the company stays on track during a time that has seen considerable changes in the South African mobile industry.

With that, I am delighted to announce that Jose Dos Santos has now been confirmed as Chief Executive Officer (CEO). He has done a sterling job as Acting CEO over the last five months and with the support of a strong management team put in place by Alan, the company has gone from strength to strength.
 

TehStranger

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Well that comes as a surprise, not.

Honestly, as positive as his experience will be for the company, the man needs to retire and put his health first for once.
 

Mo0s

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Let's hope he'll be able to turn things around for them... No doubt under his leadership Cell C has shaken up the industry and I can only hope it can survive and grow to continually do so.
 

Skerminkel

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Well, good luck AKC!

Probably the best compromise. You cannot shove him into the hot seat again, especially at this stage of the war, but they really need him.
 

marine1

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Called it long ago. Was told he was very very ill. And that he would not be back as CEO
 

McT

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Well that comes as a surprise, not.

Honestly, as positive as his experience will be for the company, the man needs to retire and put his health first for once.
Agreed. Your health is more important the stresses of your job. Good to hear that he strong again.
 

j4ck455

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Cell C said AKC would return, the main thing is that he doesn't have the stress of being the CEO :)
 

Gulio

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Lol Jose called the 79c reduced rate and now he's CEO? I foresee a lot more stuff ups with Jose at the helm.
 

RichardG

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Lol Jose called the 79c reduced rate and now he's CEO? I foresee a lot more stuff ups with Jose at the helm.
They never thought MTN & Vodacom would have come to playing field.

If they do come on board surely they will create a new package whereby you forfeit the supercharge
 

Paul Hjul

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They never thought MTN & Vodacom would have come to playing field.

If they do come on board surely they will create a new package whereby you forfeit the supercharge
Or they need a guarantee of about R100 million further financial assistance to bridge their debt pending further moves on CTRs over the next 5 months - somebody has to hedge the uncertainty - AKC handling relations with Oger is interesting and suggests that a lot of the strategic planning from Oger is going to be whether they can inflict asymmetrical damage on the MTN Group and Vodafone [lowering tariffs hurts MTN more than CellC]
 

jannievanzyl

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Or they need a guarantee of about R100 million further financial assistance to bridge their debt pending further moves on CTRs over the next 5 months - somebody has to hedge the uncertainty - AKC handling relations with Oger is interesting and suggests that a lot of the strategic planning from Oger is going to be whether they can inflict asymmetrical damage on the MTN Group and Vodafone [lowering tariffs hurts MTN more than CellC]
How do you get to R100 million? And for what period?
 

FatBoySlim

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That's BS, he is no longer involved, making public comments like that is more about keeping shareholders happy.
I don't see the fuss about a guy with good leadership qualities but whose successes was largely around being in the right place at the right time.
Plenty of other good leaders around for a lot less money. God forbid they employ his useless son for the sake of keeping a so called legacy around.
 

Paul Hjul

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How do you get to R100 million? And for what period?
Its a round number ....

But its taken from a glance at the numbers MTN threw around as to the loss that the CTRs would cause and working back to what that would mean as revenue for CellC in the 6 months after the current CTR regulations are set aside.

They would need the financial assistance to pay debt that is becoming due in the interim and would otherwise bleed their operations of cash or send them to business rescue etc ("burning the furniture").... So it would need to be bridging now to hold off for 7 months but only due over 3 years (because CTRs being favourable to CellCs strategy won't give them the wherewithal to pay other debts as they become due).

I strongly believe that there is funding available for CellC conditional upon a "favourable regulatory environment" or if it manages to grow its subscriber base beyond a key point. At the moment they have neither and subsequently putting any money in would be very high risk - a bridging loan to pay debts becoming due ... - without any connection to a premium on interest is a special ask and a special animal BUT AKC ... and the broader picture.

So my guestimates are:
100 million required as a facility before the end of the current CTR season (the 1st September 2014 IIRC) to cover about 7 months of bleeding (either as a result of no asymmetry after 1 September 2014 or as a result of CellC having banked on asymmetry increasing in 2015) which will need to be settled in 3 years time.
 

Paul Hjul

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Really?

If ogre invests another R100 mil it's counter productive. It's not helping the industry one bit.
I didn't say it helps the industry at all - and it would actually be bad for the South African ICT sector - I said that Ogre loaning CellC R100 mil will inflict asymmetrical damage to Ogre's competitors and makes business sense for Ogre to embark on (or at least threaten).

The whole problem - and the point I keep making - is that CTRs are regulated (and at the behest of the MNOs) in a manner that is irrational and open to massive amounts of arbitrage, the "costings" approach is nonsensical to begin with and arose as a means to justify tariffs that were not market related in the slightest (the bull**** claim that our termination rates were high because the operators had high costs). There is a need to move away from a situation where there is no scope for new entrants, where only two of the MNOs are above a certain ineptness threshold and where fixed line operators are prejudiced by a degree of asymmetry that lost its relevance 10 years ago. To do this requires a process which is likely to favour somebody or another and give them a little advantage.

The amount of asymmetry between operators is less relevant than the fact that the setting of CTRs to favour one technology stack over another (GSM over POTS) has demonstrably skewered investment away from fixed line infrastructure towards cellular infrastructure and underlies the current "line access deficit" deadlock (and again this is largely artificial because there is only a deficit if the operator is subsidising all lines which it doesn't need to do on leased lines), it is also less relevant than the fact that increasing call termination rates on the arrival of a new entrant represents a practice that has always been prohibited by our law. These are the two fundamental problems that need to be addressed with proper regard to commercial realities and the fact that voice revenue is a diminishing.

Now is it fair that CellC could benefit from the windfall that the changes could bring? Not really, but so what as long as the changes brought about do not result in positive harm inflicted on the BAUT it is a form of regulatory windfall that is taxed on the general populace which is what is happening at the moment to the favour of the BAUT. So long as we have a highly regulated industry this is going to be the case.

There are better ways for the BAUT to reign in the threat of CellC that will be good for the industry including their own value as companies. Moreover if the BAUT can address the competition issues and get a proper settlement in place before things even go to the tribunal they could spare themselves a lot of pain, Telkom made a serious error of judgment in not playing ball earlier.
 
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