Cell C might not survive: CEO

Watch how Vodacom will cannibalize Neotel if the takeover goes through.

Vodacom has never been good at acquisitions, just look at what happened with Gateway Communications and how VC managed to devalue GC. Funny is that CellC hosts a lot with Neotel so that will cause some issues.

Also, Neotel is not really in a very strong position.

A clever move would be for Telkom to snap up CellC and then work with the banks and retailers to grow market share.
 
@MD4E: If they aren't obligated to keep Neotel as a going concern ..
 
Paul Hjul said:
@MD4E: If they aren't obligated to keep Neotel as a going concern ..
Click to expand...

Still quite puzzled about the value-proposition. VC pumped closed to 12bn Rand into their fibre rings, they have their own hosting and Neotel's fixed line business is going down the tubes (even Telkom conceded that fixed line voice calls will be dead in 3 years) and neither Neotel nor VB will make any successes in the hosting area (I know of 4 big internationals coming into SA in 2015 which will turn hosting services upside down).

TBH, for me CellC was certainly a step up from MTN and most of our staff has moved from VC/MTN to CellC as well. I think CellC struggles with coverage and hence some people will be worse off. All the people I know did not have to result to extravagant banners in order to get customer service issues resolved.

I think all SPs will face problems in the next 2 years. None have adopted new business models and SMS is being replaced by IM (WhatsApp, iMessage etc), Wifi penetration is so good that mobile data usage is dropping and data costs for per GB price have dropped below R1 for international and substantially more for local. So all SPs who have shrugged of value-added services such as VOD will bleed heavily in 2 years time. The CellC CEO seems to be equally oblivious to that and still thinks it is the competitive landscape in the form of MTN, VC and Telkom, but completely overlooks players such as Altech and others slowing offering products which actually start to have value for consumers.
 
moklet said:
Spectrum
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which can't be transferred on purchase ...
Neotel will need to be preserved as a going concern and a wholesale ECS will need to be provided to Vodacom
otherwise the spectrum will need to re-enter the general pool
 
Eventually and inevitably cellphone service providers are going to be nothing but mobile data suppliers. Everything is moving in that direction and the sooner they adapt and accept it, the sooner they can sort working on how to make money from selling data that doesn't involve screwing the customer over and concentrate on that as their core business. The cellphone companies will be come last mile service providers for mobile data, while more agile and competent companies like Whatsapp, Google Voice, Skype, etc will dominate what we do with that data.
 
We need monopoly protection to be part of the monopoly ...

Bleating about mergers doesn't help Cell C. If they think mergers move business forward, they should do some themselves. Cell C: survive for yourself.
 
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marine1 said:
The worst thing to happen was AKC getting sick. I don't think the current CEO us the right man to lead cell C
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I did not really understand how things went from then when AKC got ill. Maybe the company wouldn't be where it is now. We really need them to stay in the game tbh
 
MagicDude4Eva said:
Still quite puzzled about the value-proposition. VC pumped closed to 12bn Rand into their fibre rings, they have their own hosting and Neotel's fixed line business is going down the tubes (even Telkom conceded that fixed line voice calls will be dead in 3 years) and neither Neotel nor VB will make any successes in the hosting area (I know of 4 big internationals coming into SA in 2015 which will turn hosting services upside down).

TBH, for me CellC was certainly a step up from MTN and most of our staff has moved from VC/MTN to CellC as well. I think CellC struggles with coverage and hence some people will be worse off. All the people I know did not have to result to extravagant banners in order to get customer service issues resolved.

I think all SPs will face problems in the next 2 years. None have adopted new business models and SMS is being replaced by IM (WhatsApp, iMessage etc), Wifi penetration is so good that mobile data usage is dropping and data costs for per GB price have dropped below R1 for international and substantially more for local. So all SPs who have shrugged of value-added services such as VOD will bleed heavily in 2 years time. The CellC CEO seems to be equally oblivious to that and still thinks it is the competitive landscape in the form of MTN, VC and Telkom, but completely overlooks players such as Altech and others slowing offering products which actually start to have value for consumers.
Click to expand...

:D LOL
 
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