Cell C is struggling to pay MTN to roam on its network

Bradley Prior

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Cell C is struggling to pay MTN to roam on its network

Cell C is struggling to pay its bills for roaming on MTN's network, according to financial data from MTN's interim results for the period ended 30 June 2019.

Speaking at MTN's results presentation in Johannesburg, MTN Group CEO Rob Shuter confirmed that Cell C was not able to make the required payments on time.
 

Happy Days

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How can you expand a roaming agreement when you can't even pay for the existing agreement??? :unsure: o_O Surely there's more to this than what's being reported?
 

DXL

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As an observer looking at this trouble Cell-c is in ?
Why are Cell-C and Telkom not combining there towers and sharing a single network but run separate companies. So what would need to happen is that a New Company be formed called Cell-Com and both Cell-C and Telkom each hold a 50% interest in the new Company they evaluate their network each and either of them pays the Balance into the Cell-Com. All they need to do is sell services on the Last mile. Everyone Wins.
Enough Spectrum to rollout a powerful network.
 

ToxicBunny

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As an observer looking at this trouble Cell-c is in ?
Why are Cell-C and Telkom not combining there towers and sharing a single network but run separate companies. So what would need to happen is that a New Company be formed called Cell-Com and both Cell-C and Telkom each hold a 50% interest in the new Company they evaluate their network each and either of them pays the Balance into the Cell-Com. All they need to do is sell services on the Last mile. Everyone Wins.
Enough Spectrum to rollout a powerful network.
Would you go into a JV with a company that looks like its about to fold, when your financials are pretty well sorted and looking strong for growth into the future?
 

Suspect99

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I wonder what affect this will have on FNB connect. They roam on Cell C if I recall correctly
 

DXL

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Would you go into a JV with a company that looks like its about to fold, when your financials are pretty well sorted and looking strong for growth into the future?
You not going into business with them.
You merely separating the hardware or physical network from the business and placing a value on it and essentially placing it into a newco. The Value of the newco will increase as they can also sell services to anyone who requests it.

If Cell-C goes under then the newco asset part can be sold off separately not affecting telkom in any way.
 

[XC] Oj101

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So this roaming actually came into effect? I only ever get roaming on Vodacom, I’ve never roamed on MTN - who happens to have the best signal where I live :(
 

DTBA

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So this roaming actually came into effect? I only ever get roaming on Vodacom, I’ve never roamed on MTN - who happens to have the best signal where I live :(
You cant see roaming on mtn it will show as cellc
 

ToxicBunny

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You not going into business with them.
You merely separating the hardware or physical network from the business and placing a value on it and essentially placing it into a newco. The Value of the newco will increase as they can also sell services to anyone who requests it.

If Cell-C goes under then the newco asset part can be sold off separately not affecting telkom in any way.
Each to their own... Personally I wouldn't partner with a company that is struggling under so much debt... Chances are for them to unbundle the hardware would entail the new entity having to agree to an onerous amount of debt on inception.
 

konfab

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As an observer looking at this trouble Cell-c is in ?
Why are Cell-C and Telkom not combining there towers and sharing a single network but run separate companies. So what would need to happen is that a New Company be formed called Cell-Com and both Cell-C and Telkom each hold a 50% interest in the new Company they evaluate their network each and either of them pays the Balance into the Cell-Com. All they need to do is sell services on the Last mile. Everyone Wins.
Enough Spectrum to rollout a powerful network.
No sense in partnering with a company that is burning the furniture.

What I think Telkom are doing is waiting till CellC does go bankrupt. They can then get a much better deal. I think there are also some tax advantages for doing this as well.
 

DXL

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No sense in partnering with a company that is burning the furniture.

What I think Telkom are doing is waiting till CellC does go bankrupt. They can then get a much better deal. I think there are also some tax advantages for doing this as well.
Well actually by doing what i suggested Cell-C becomes a winner on the deal and Telkom wins by getting more rural coverage by relocating towers that Cell-C has in CBD areas into where there is no coverage thus both companies can remove the need for roaming on MTN & Vodacom's network both will save almost close to R2 Billion a year.

Thats a cool 10% increase on the profit. Cell-C and Telkom can both offer bigger data plans in the CBD with their Extra Spectrum and relocate most of Cell-C towers to outlying areas.

I know and understand its something huge i am suggesting but the benefits are huge for Both Cell-C & Telkom along with customers.

Considering the amount of Spectrum the new company would have they could do as they please in tower rollout.

If Cell-c goes under then they simply have to sell their 50% of the Towerco to a new company who will begin services.
 
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