Levy said they started the recapitalisation process in August 2019, which was finally completed in October 2022.<\/p>\n
\u201cThe process is now complete, and the money has been paid over. It now gives us an opportunity to move on as Cell C and build the company we believe it can be,\u201d he said.<\/p>\n
Levy said they are looking forward to the next 24 months and executing their plans for the mobile operator.<\/p>\n
As part of its strategy, Cell C will focus on capturing market share in areas where it did not operate before.<\/p>\n
It will also enter the fintech market with a novel approach and its own platform. Levy said they would release details about this plan at a later stage.<\/p>\n
\n
Cell C brand<\/strong><\/h2>\nLevy told analysts Cell C had spent hundreds of billions of rands on its brand, adding that it has a very strong brand in the market.<\/strong><\/p>\nLevy\u2019s estimate of how much Cell C spent building its brand is highly inflated, and it can be assumed that he messed up the numbers.<\/p>\n
It is true that Cell C has a strong challenger brand in the South African mobile market and is seen as an alternative to Vodacom and MTN, along with Telkom.<\/p>\n
However, Cell C\u2019s brand is also associated with poor service levels and a network which falls short of its competitors.<\/p>\n
Research by Analytico showed that only 3% of people said they would pick Cell C for a new fixed LTE or 5G service.<\/p>\n
It shows that Cell C\u2019s financial and operational challenges have filtered down to consumers in terms of brand awareness.<\/p>\n
![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2022\/11\/Analytico-operator-brand-strength-2022.jpg\")
<\/a><\/p>\n
\nSpectrum<\/strong><\/h2>\nLevy said Cell C has valuable spectrum assets which can be quantified following the recent spectrum auction. He added that what they are doing with their spectrum makes it a great asset.<\/strong><\/p>\nHe is correct. Cell C\u2019s 94 MHz of mobile spectrum is worth billions and is an underestimated asset not shown in the company\u2019s balance sheet.<\/p>\n
The Communications Minister\u2019s recent draft spectrum policy proposed legalising spectrum trading, which will play into Cell C\u2019s hands.<\/p>\n
Analysys Mason valued Cell C\u2019s spectrum at R10 billion. It looks high, but it indicates the value of spectrum.<\/p>\n
![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2022\/11\/Spectrum-holdings-post-auction-Vodacom-MTN-Cell-C-Telkom-Rain.jpg\")
<\/a><\/p>\n
\nAssessed loss<\/strong><\/h2>\nLevy said Cell C has an assessed loss of R8 billion. Therefore, the mobile operator only has to pay tax on 20% of its taxable income in years to come, which has great value to Cell C and Blue Label.<\/strong><\/p>\nLevy is correct. Cell C\u2019s assessed losses translate to an unrecognised deferred tax asset of around R8 billion.<\/p>\n
This asset will likely be recognised in stages as Cell C starts to generate profits. It can be carried forward indefinitely and will add to Cell C\u2019s bottom line if it makes profits.<\/p>\n
\nThe prepaid engine<\/strong><\/h2>\nLevy said Cell C now has 4G and 5G coverage in areas where it did not have any coverage before. He added that Cell C could gain market share in these areas and increase the ARPU of users.<\/strong><\/p>\nIt is inaccurate. Cell C CTO Schalk Visser confirmed that Cell C does not have 5G coverage<\/a><\/strong>, which puts it at a disadvantage against Vodacom, MTN, Rain, and Telkom, which all have 5G networks.<\/p>\nHe is correct that Cell C\u2019s roaming and network deals with MTN and Vodacom provide it with wider 4G coverage and, in turn, a larger addressable market.<\/p>\n
So, while Cell C does not have a 5G network, its improved 4G coverage gives it the opportunity to grow its subscriber base with attractive products.<\/p>\n
Cell C has a challenge with a shrinking contract and broadband base, and many of its prepaid customers are not loyal and jump between many networks.<\/p>\n
However, a group of South Africans prefer to support an underdog \u2014 instead of Vodacom and MTN \u2014 which is where Cell C is strong.<\/p>\n
\nMVNO market<\/strong><\/h2>\nLevy said there is a place for MVNOs in South Africa, which is a great product for Cell C. They have a great system with good margins.<\/strong><\/p>\nLevy is correct. The growth potential for Cell C in the MVNO market is substantial, and it has recently signed up Capitec<\/a><\/strong> as an MVNO partner.<\/p>\nCell C already hosts over 20 MVNOs, through which it serves 2.1 million subscribers. Its clients include large banks, retailers like Shoprite and Mr Price, and other big brands.<\/p>\n
It has a big advantage over competitors like Vodacom and MTN in the MVNO market because of its experience and platform.<\/p>\n
\nThis article was first published by Daily Investor<\/a><\/strong> and is republished with permission.<\/em><\/p>\nNow read:\u00a0Cell C announces price hikes<\/a><\/h2>\n","protected":false},"excerpt":{"rendered":"Daily Investor fact-checked Blue Label Telecoms co-CEO Brett Levy’s statements about Cell C’s five key assets \u2014\u00a0its brand, spectrum, assessed losses, the prepaid engine, and advantage in the mobile virtual network operator market.<\/p>\n","protected":false},"author":341108,"featured_media":466591,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[80335],"tags":[64917,355,35,20557,70359],"class_list":["post-466965","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-analytico","tag-cell-c","tag-headline","tag-mobile-virtual-network-operator-mvno","tag-schalk-visser"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/466965"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341108"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=466965"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/466965\/revisions"}],"predecessor-version":[{"id":466977,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/466965\/revisions\/466977"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/466591"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=466965"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=466965"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=466965"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Levy\u2019s estimate of how much Cell C spent building its brand is highly inflated, and it can be assumed that he messed up the numbers.<\/p>\n
It is true that Cell C has a strong challenger brand in the South African mobile market and is seen as an alternative to Vodacom and MTN, along with Telkom.<\/p>\n
However, Cell C\u2019s brand is also associated with poor service levels and a network which falls short of its competitors.<\/p>\n
Research by Analytico showed that only 3% of people said they would pick Cell C for a new fixed LTE or 5G service.<\/p>\n
It shows that Cell C\u2019s financial and operational challenges have filtered down to consumers in terms of brand awareness.<\/p>\n
Levy said Cell C has valuable spectrum assets which can be quantified following the recent spectrum auction. He added that what they are doing with their spectrum makes it a great asset.<\/strong><\/p>\n He is correct. Cell C\u2019s 94 MHz of mobile spectrum is worth billions and is an underestimated asset not shown in the company\u2019s balance sheet.<\/p>\n The Communications Minister\u2019s recent draft spectrum policy proposed legalising spectrum trading, which will play into Cell C\u2019s hands.<\/p>\n Analysys Mason valued Cell C\u2019s spectrum at R10 billion. It looks high, but it indicates the value of spectrum.<\/p>\n Levy said Cell C has an assessed loss of R8 billion. Therefore, the mobile operator only has to pay tax on 20% of its taxable income in years to come, which has great value to Cell C and Blue Label.<\/strong><\/p>\n Levy is correct. Cell C\u2019s assessed losses translate to an unrecognised deferred tax asset of around R8 billion.<\/p>\n This asset will likely be recognised in stages as Cell C starts to generate profits. It can be carried forward indefinitely and will add to Cell C\u2019s bottom line if it makes profits.<\/p>\n Levy said Cell C now has 4G and 5G coverage in areas where it did not have any coverage before. He added that Cell C could gain market share in these areas and increase the ARPU of users.<\/strong><\/p>\n It is inaccurate. Cell C CTO Schalk Visser confirmed that Cell C does not have 5G coverage<\/a><\/strong>, which puts it at a disadvantage against Vodacom, MTN, Rain, and Telkom, which all have 5G networks.<\/p>\n He is correct that Cell C\u2019s roaming and network deals with MTN and Vodacom provide it with wider 4G coverage and, in turn, a larger addressable market.<\/p>\n So, while Cell C does not have a 5G network, its improved 4G coverage gives it the opportunity to grow its subscriber base with attractive products.<\/p>\n Cell C has a challenge with a shrinking contract and broadband base, and many of its prepaid customers are not loyal and jump between many networks.<\/p>\n However, a group of South Africans prefer to support an underdog \u2014 instead of Vodacom and MTN \u2014 which is where Cell C is strong.<\/p>\n Levy said there is a place for MVNOs in South Africa, which is a great product for Cell C. They have a great system with good margins.<\/strong><\/p>\n Levy is correct. The growth potential for Cell C in the MVNO market is substantial, and it has recently signed up Capitec<\/a><\/strong> as an MVNO partner.<\/p>\n Cell C already hosts over 20 MVNOs, through which it serves 2.1 million subscribers. Its clients include large banks, retailers like Shoprite and Mr Price, and other big brands.<\/p>\n It has a big advantage over competitors like Vodacom and MTN in the MVNO market because of its experience and platform.<\/p>\n This article was first published by Daily Investor<\/a><\/strong> and is republished with permission.<\/em><\/p>\n Daily Investor fact-checked Blue Label Telecoms co-CEO Brett Levy’s statements about Cell C’s five key assets \u2014\u00a0its brand, spectrum, assessed losses, the prepaid engine, and advantage in the mobile virtual network operator market.<\/p>\n","protected":false},"author":341108,"featured_media":466591,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[80335],"tags":[64917,355,35,20557,70359],"class_list":["post-466965","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-analytico","tag-cell-c","tag-headline","tag-mobile-virtual-network-operator-mvno","tag-schalk-visser"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/466965"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341108"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=466965"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/466965\/revisions"}],"predecessor-version":[{"id":466977,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/466965\/revisions\/466977"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/466591"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=466965"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=466965"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=466965"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<\/a><\/p>\n
\nSpectrum<\/strong><\/h2>\n
<\/a><\/p>\n
\nAssessed loss<\/strong><\/h2>\n
\nThe prepaid engine<\/strong><\/h2>\n
\nMVNO market<\/strong><\/h2>\n
\nNow read:\u00a0Cell C announces price hikes<\/a><\/h2>\n","protected":false},"excerpt":{"rendered":"