On 18 August 2013, Paul Theron, CEO of Vestact Limited, said that Cell C has decimated its own business case and predicted that the company will be dead within six months. This was not his finest moment.
Speaking on CNBC last year, Theron said that Cell C is messing up the mobile market in South Africa for everyone, including themselves, with their aggressive pricing strategy.
Theron said that Cell C is “basically burning the furniture over there to stay in business,” and had to raise more money to remain afloat.
“Cell C will be dead within 6 months. Listen to me now – they are under such pressure that they basically decimated their own business chasing market share,” said Theron.
Theron added that if Alan Knott-Craig is still the CEO of Cell C in six months’ time he will be very surprised.
Six months later
Six months on, and Cell C is alive and well. The recently announced Call Termination Regulations, which proposes significant asymmetry, is also set to give Cell C a massive financial boost.
The company moved into its new offices in Midrand last year, which also features a walk-in customer care centre and a large warehouse.
Cell C acting CEO Jose Dos Santos said that they are pleased with the company’s growth over the last 18 months, and have a good business plan to take it forward.
The Cell C board also seems happy with the company. “While I cannot comment on behalf of the board the feedback that I have received from them over the last few months is that they are fully supportive and happy with Cell C’s progress,” said Dos Santos.
Theron was asked for comment about his incorrect prediction that Cell C will be dead within six months, but he did not respond by the time of publication.