Massive cash injection for Cell C

Marcan said:
Yep, people are confused here, SAA has received already more than R18 billion over the last 20 years in bailouts. And Government is assisting them with R70 Billion to purchase new, more fuel efficient aircrafts. Telkom might have had enormous government intervention, but no bail outs to my knowledge. Both should be fully privatised is my strong and often repeated opinion.
Hope fully Cell C can improve their network ASAP, until 5,6 months ago my HSDPA connection was still working well in this area, it has also totally collapsed. Slow speeds, DLs mostly around 0.2 to 0.8 Mbps nowadays and frequent disconnects.
Click to expand...
Additionally a lot of the "supportive" intervention of government is being enjoyed by Vodacom, the intervention of later years has largely been a "pay back" variety. Maybe Telkom needs some more helpful shareholders like MK vets.
 
will enable the company to continue offering “competitive and innovative products and services
Click to expand...

Huge difference between offering those products and services, and delivering on those offers.
 
Haldex said:
Its a bail out, another one, the fourth one since they went bankrupt around 2005 if I recall.
For the past 9 months they have been unable to sort out their network. Their building has been slow since they laid the foundation, retrenchments.
Its a bail out.
Click to expand...

You need to investigate the difference between investment and a bail out. Under your definition most private equity and M&A would be viewed as a bail out.
 
Haldex said:
Its a bail out, another one, the fourth one since they went bankrupt around 2005 if I recall.
For the past 9 months they have been unable to sort out their network. Their building has been slow since they laid the foundation, retrenchments.
Its a bail out.
Click to expand...

I doubt Nedbank would consider investment as a bail out
 
Paul Hjul said:
Additionally a lot of the "supportive" intervention of government is being enjoyed by Vodacom, the intervention of later years has largely been a "pay back" variety. Maybe Telkom needs some more helpful shareholders like MK vets.
Click to expand...

Our Beloved Gov still has about 5% direct shares in Vodacom, and previously held an enormous share in it indirectly through Telkom. I believe Telkom owned some 40 % until about 6,7 years ago. Then sold it to try something in Nigeria, where thy squandered some R10 Billion. Not sure about exact amounts though, but they lost massively in Nigeria.
Maybe Telkom needs some more helpful shareholders like MK vets.[/QUOTE] ROFL
 
AlmightyBender said:
You need to investigate the difference between investment and a bail out. Under your definition most private equity and M&A would be viewed as a bail out.
Click to expand...

Precisly, I dont see why people are so negative about it. If a major shareholder is supplying the money then technically you cant call it a bailout because if the major shareholder has the money to inject it simply means the company was never in financial trouble.
 
AlmightyBender said:
You need to investigate the difference between investment and a bail out. Under your definition most private equity and M&A would be viewed as a bail out.
Click to expand...

Ol' Mean Bastid said:
I doubt Nedbank would consider investment as a bail out
Click to expand...

If the holding company injects cash into the ancillary company because they need it, its a cash bailout especially in Cell C case.
Their profits are low, infrastructure opex costs increasing, head count increases, new building and warehousing. Could be investment for expansion or a bailout. Their pricing is low, the subscriber numbers are increasing very slowly, without the bailout would they survive the next 6 months even at a slow and steady rate? Doubt it.
 
Why complain about something that will help them to offer even better value for money to me as one of their satisfied customers? CellC has been offering me the best 3G broadband connection from all of the other service providers and that is just the way I like it. :whistle:
 
Ryansr said:
Why complain about something that will help them to offer even better value for money to me as one of their satisfied customers? CellC has been offering me the best 3G broadband connection from all of the other service providers and that is just the way I like it. :whistle:
Click to expand...

Totally agree, Cellc is probably the only company out there that passes down investments like this to the consumer. Im lucky enough to have great coverage where i live, even if 3g may be slightly slower in the evenings the 15c per meg rate is more than worth it.
 
Haldex said:
Its a bail out, another one, the fourth one since they went bankrupt around 2005 if I recall.
For the past 9 months they have been unable to sort out their network. Their building has been slow since they laid the foundation, retrenchments.
Its a bail out.
Click to expand...

Its not a bail out at all, I don't think you know what a bail out is.

Also it took Vodacom and MTN a lot longer to get to the same point.
 
supersunbird said:
Dont worry guys, Haldex seems to have some "issues" and goes off half cocked normallly. Best ignore what he said.
Click to expand...

Nerfherder said:
Its not a bail out at all, I don't think you know what a bail out is.

Also it took Vodacom and MTN a lot longer to get to the same point.
Click to expand...

Ok
So they got 180 bar in May last year, 350 bar now, still roaming on other networks...
No capex investment talk?
 
Haldex said:
Ok
So they got 180 bar in May last year, 350 bar now, still roaming on other networks...
No capex investment talk?
Click to expand...

Bail outs are only a worry if its with tax payer money. You only have the right to moan if you are a Oger Telecoms shareholder in this instance and feel its a waste of money that should have been used for something else. I doubt you are.
 
Last edited:
Maybe they are saving to rollout LTE instead of upgrading the current 3G.....Also look at how much VC and MTN spend every year compared to this bailout....
 
The previous one may have been a small bail out due to cash flow issues or something similar. This one is in total about 4 times bigger than that. It is an investment, probably due to talks with Telkom breaking down or something similar. I am sure this is going towards a more aggressive expansion especially with LTE since Telkom are out of the picture.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X