Financial doom for Cell C and Telkom Mobile: analyst

Always doom and gloom for Cell C and Telkom mobile. And without them the consumer suffers the most. Its a cruel world.
 
Ecco said:
Always doom and gloom for Cell C and Telkom mobile. And without them the consumer suffers the most. Its a cruel world.
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The markets too small in my opinion.
The new entrants need lower pricing as a strategy to gain traction.
So with low competitive pricing it means smaller margins and profits.
They still need staff and at the current market related wages it becomes a challenge.
Then infrastructure investments.
Its too late in the industry for this, should have started in 2005.

3 networks is enough for our population.
We also struggle with very high and demanding wireless users and the very low income users.

Ideally in a perfect world and perfect conditions, all the poor should be with one network and then middle income to high income with another network. That will help, but will never happen.

If I was Cell C, id kick off all the high demanding users and send them to Vodacom and MTN, keep the low income users even if its just low ARPU, but then get government involved for funding.
Cell C is wasting their time on the higher ARPU contracts in my opinion.
 
I'm curious to see whether this 'financial analyst' has been shorting those stocks shortly after his rant lol.
 
Ecco said:
Always doom and gloom for Cell C and Telkom mobile. And without them the consumer suffers the most. Its a cruel world.
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:cry: , let's see how the prediction turns out
 
I agree !

iaywtimnbe said:
I'm curious to see whether this 'financial analyst' has been shorting those stocks shortly after his rant lol.
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I agree ! this is an old trick in the USA and people made Billions because of placing fear into the minds of people who are not knowledgeable and sell their shares quickly.

What worries me is the fact that i cannot get decent broadband data service at a fair price from any network in South Africa except from Telkom Mobile who is trying their best.

Yet we say the market is saturated.

My friends have just come back form Singapore and Hong Kong and they said our speeds and access and price is nowhere near those countries.

Where there is a need there's money to be made and Billions of it too.

Why is Telkom or Cell-C not taking advantage of the Data Boom ?
 
DXL said:
I agree ! this is an old trick in the USA and people made Billions because of placing fear into the minds of people who are not knowledgeable and sell their shares quickly.

What worries me is the fact that i cannot get decent broadband data service at a fair price from any network in South Africa except from Telkom Mobile who is trying their best.

Yet we say the market is saturated.

My friends have just come back form Singapore and Hong Kong and they said our speeds and access and price is nowhere near those countries.

Where there is a need there's money to be made and Billions of it too.

Why is Telkom or Cell-C not taking advantage of the Data Boom ?
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Rule of thumb, if anyone compares networks speeds, reliability and access with the far east, just laugh and ignore.
 
I don't think anybody with any understanding of the history of telecos failures ever thought Telkom Mobile (especially not with the late launch) was ever going to be "profitable to shareholders" what has been well known though is that without having mobile within its converged offerings to end users Telkom will be unsustainable as listed company enterprise. The real problem Telkom needed to address was that it did not have a mobile user fielding radio access network and had a lot of assets in the radio field that were not suited to providing mobile voice and data. The situation has changed, Telkom now have a full RAN sharing agreement allowing them to offer converged offerings and they are installing LTE assets outside of the sharing agreement (largely to enable last mile alternatives to dependence on copper assets)

CellC is a pickle. I don't quite understand the idea of "perfect conditions, all the poor should be with one network" ...
 
iaywtimnbe said:
I'm curious to see whether this 'financial analyst' has been shorting those stocks shortly after his rant lol.
Click to expand...

I think Wayne will have mainly MTN shares, possibly Vodacom, not likely to have many Telkom (but mobile is just a portion of the share driver) and no Cell C/Oger shares. I say that about Telkom because he is a cautious investor.

The most you could accuse him of is giving good advice, and perhaps gloating on not having a Telkom share stockpile
 
There are many countries with multiple operators. Uganda is basically a market of one city, with half a dozen operators.

The problem is not the market, it's the operation - don't try to run Cell C like a mini-Vodacom.

The solution is innovation - innovation, finding a niche. Dos Santos has one strategy - put promo pricing and handsets into the market all the time. That is probably useful, but there should be a bigger, over-arching innovation.
 
entrepr said:
I think Wayne will have mainly MTN shares, possibly Vodacom, not likely to have many Telkom (but mobile is just a portion of the share driver) and no Cell C/Oger shares. I say that about Telkom because he is a cautious investor.

The most you could accuse him of is giving good advice, and perhaps gloating on not having a Telkom share stockpile
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Could be that he regrets not having Telkom shares a year ago?
May 2013: R12,90
Today: R39,90
 
To me it seems pretty obvious where the smaller guys can compete: customer service and innovative products. Vodacom and MTN have neither.
 
MickeyD said:
Could be that he regrets not having Telkom shares a year ago?
May 2013: R12,90
Today: R39,90
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and curiously if you were to consider that Telkom Mobile is a component of that his analysis is dead wrong ...
 
When analysts dabble in philosophical discussions then these type of comments are common. Wayne's main premise is that the mobile market is saturated and even if it was there's always room for competition for innovative companies.

Wayne should look at the history of his own company (and others) and perhaps then he would refrain from throwing around his careless opinion.
 
Voice might be on the way out, Data revolution has just began...
Most uses for data has not even invented yet...
Google and Amazon is giving us a preview of what is to come.
Wait till every business place everything on the cloud. Data is going to as essential is the air we breathe.

All money transactions, all entertainment, video, audio, information, services, investments etc. All online.

Get people on your network by offerring cheap call rates, make money when they use the internet! My hdd space grew from 320MB 1995 vs 4TB 2014... Sorry to say but I see excellent opportunities for growth.
 
entrepr said:
I think Wayne will have mainly MTN shares, possibly Vodacom, not likely to have many Telkom (but mobile is just a portion of the share driver) and no Cell C/Oger shares. I say that about Telkom because he is a cautious investor.

The most you could accuse him of is giving good advice, and perhaps gloating on not having a Telkom share stockpile
Click to expand...

Why does everyone bring in a share card into discussions?
 
znh said:
Voice might be on the way out, Data revolution has just began...
Most uses for data has not even invented yet...
Google and Amazon is giving us a preview of what is to come.
Wait till every business place everything on the cloud. Data is going to as essential is the air we breathe.

All money transactions, all entertainment, video, audio, information, services, investments etc. All online.

Get people on your network by offerring cheap call rates, make money when they use the internet! My hdd space grew from 320MB 1995 vs 4TB 2014... Sorry to say but I see excellent opportunities for growth.
Click to expand...

Its already started but the market is slow.
I believe MS device have about 5GB of cloud storage with their devices but no uptake.

Business are worried about security of the cloud.

yes it will come, but its not an option just yet.
 
Wayne's main premise is that the mobile market is saturated and even if it was there's always room for competition for innovative companies.
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Exactly my view when reading this article.
 
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