Cell C’s signal fading fast

Syndyre

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Virgin Mobile SA, which has a 50% shareholding in Cell C, has indicated it is mulling a listing on the JSE at some point, and would consider buying out its partner’s stake if the opportunity presented itself.

Is this accurate? I thought Cell C had a 50% stake in VMSA rather than the other way around? IIRC Virgin only invested a few hundred million to launch VMSA, not enough to buy 50% of Cell C.
 

GougedEye

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Agreed. VMSA was a joint venture between Cell C and Virgin. And not quite 50 / 50 as I recall.
 

eremos

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You can't stop the signal!

Cell C, South Africa’s third-biggest cellphone company, has buyers circling as it flounders in the face of stiff competition from larger rivals.
Should be:
Cell C, South Africa’s third-biggest cellphone company, has buyers circling as it flounders in the face of anti-competitiveness from larger rivals.

I think interconnection is one of Cell C's biggest problems and have no doubt that they have a serious chance of competing when ICASA brings in the interconnection legislation from http://mybroadband.co.za/vb/showthread.php?t=82454 . Further I believe a big part of the reason Cell C's primary shareholder decided not to sell after all was because of said impending legislation.

I wouldn't write them off just yet.

Edit: Okay, I've just read the rest of it and man, what a doomy article. I especially enjoyed this bit:
A deal in Nigeria fell through last year, but Virgin Mobile is now trawling Egypt and Kenya for a suitable partner — without Cell C.

How is this relevant? VM is a worldwide operation constantly seeking expansion. Whether or not Cell C is part of said expansion is completely irrelevant to this article.

Virgin Mobile SA, which has a 50% shareholding in Cell C, has indicated it is mulling a listing on the JSE at some point, and would consider buying out its partner’s stake if the opportunity presented itself.

I'm sorry, did you do any research at all or are you just out to intentionally mislead us? Cell C and VM both own 50% of VMSA. No friggin way does VMSA own 50% of Cell C, this claim is an outright lie!
 
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Boodles

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Cell C, South Africa’s third-biggest cellphone company, has buyers circling as it flounders in the face of stiff competition from larger rivals.

Sure, competition is tough, but the last few years of Cellc's stagnate growth was a result of a CEO that wasn't up to the job.
 

BTTB

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Virgin + Telkom = ?

I wouldn't write them off just yet.
I agree.

To me the obvious choice would be for Telkom and Virgin Mobile to run the Cell C Operation jointly.
That is if Telkom would like Virgin on-board or the other way round. There is obvious other benefits within the Virgin Group which perhaps Telkom is eyeing. Telkom has to Diversify.
Of course the sale won't happen if Telkom owns 50% of Vodacom as The Competitions Board imo will not allow it.
Shareholders in Telkom could be in for handsome dividends if Telkom did sell that 50% of Vodacom and acquire Cell C at a discount. I think the timing is ripe for this and that 50% sale would place Telkom in the pound seats.
Looking forward the sale might bring short term gains, but there is nothing wrong with taking some money off the table. Who knows what the future holds. Even the Cell Phone Market can take a dive if newer and better technology makes it so.

Telkom has the infrastructure and money to make Cell C work and it would certainly bring a welcome change to the Cell Phone Market which is basically a two way race between MTN and Vodacom, with the latter distinctly in the lead.
I would also chance the name. Cell C's name is it's nemesis. Change it all to Virgin Mobile, or some name combining Telkom and Virgin.
I was trying to think of a name that would give these two companies a distinct ring.:D Pun intended.

Imagine. Telkom and Virgin.
Telephones, Cell Phones, Internet, Broadband, Musica, Airlines, Trains etc.
If I was the CEO of Telkom I would be making acquisitions now and not necessarily in other parts of the world. There is still wallops of money to made here. A guy like Richard Branson could take a Company like Telkom and make it into an empire.
Telkom should seriously consider diversifying. The fixed line market is stale.
 
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swim

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Can't call them virgin telkom.
Telkom is old and wrinkled
 
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BTTB

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Can't call them virgin telkom.
Telkom is old and wrinkled
The old girl has got lots of money. :D
Perhaps Telkom will address this as a matter of Virgin-C
Or Virgin T.
I think Virgin Mobile still has about the best ring to it.
We can leave this up to the Marketing Gurus to compile.
Always wondered how they come up with names.
Do they sit in the Boardroom brainstorming a whole bunch of names until they come up with one they like and put it to the vote.
For instance who decided that we would enjoy the Vodacom Meerkat?
 
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Alan

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"Cell C’s signal fading fast"

You can say that again :mad:.

Had trouble last week with Cell C's "signal":eek:
 

ic

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Since Telkodemonopolies is doing WiMax, and mobile WiMax will be available in a few years, why bother investing in CellC's 2.75G network??? - seems like a waste of money IMO when mobile WiMax is quite possibly the way of the future.

Also, who really cares about Telkodemonopolies' cellular aspirations - I would rather have it such that Telkodemonopolies sells its 50% shareholding in Vodacom and then Virgin Mobile [UK] snaps up CellC before Telkodemonopolies can lay its festering paws on CellC...

Let Telkodemonopolies eat the mud-cookie it has been creating for itself - at the very least it would force Telkodemonopolies to improve its local wired infrastructure in order to show any kind of growth [in SA], instead of gobbling up a wireless competitor to avoid improving its wired infrastructure.
 

Gatecrasher

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I cannot see Government agreeing to Telkom selling off the remaining 50% Vodacom stake to an offshore company. It would fly completely in the face of their BEE objectives. (And what would happen if a Tsunami struck?!?)

If Telkom ever does shed its 50% stake it will most likely to be to a black controlled consortium.

If Telkom did go after Cell-C it certainly would not require anything like R75bln to buy a controlling stake. The 50% stake in Vodacom is more than sufficient collateral for any deal they may wish to do.

There is just no good reason for Telkom selling their Vodacom stake right now. It has been a fantastic investment. Telkom may not like Vodacom's rebelliousness, but I'm sure they will quite happily put up with it while Vodacom continues to bring home the bacon.
 

ic

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I cannot see Government agreeing to Telkom selling off the remaining 50% Vodacom stake to an offshore company. It would fly completely in the face of their BEE objectives. (And what would happen if a Tsunami struck?!?)

If Telkom ever does shed its 50% stake it will most likely to be to a black controlled consortium.

If Telkom did go after Cell-C it certainly would not require anything like R75bln to buy a controlling stake. The 50% stake in Vodacom is more than sufficient collateral for any deal they may wish to do.

There is just no good reason for Telkom selling their Vodacom stake right now. It has been a fantastic investment. Telkom may not like Vodacom's rebelliousness, but I'm sure they will quite happily put up with it while Vodacom continues to bring home the bacon.
I agree 100% with you, I posted a similar but much less comprehensive opinion a few days back - I just don't see Telkodemonopolies divorcing itself from Vodacom - as much as I wish it would happen, I don't think it ever will happen - unless Telkodemonopolies is legally required to split & divest.
 

DragonLogos

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I think its more of a question of Vodacom wants shot of Telkom, and government will go along with it as it will be a big pay ovt - who cares if its short term, take the money and run seems to be the order of the day
 
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