Cell C broadband subscriber base grows, voice revenue down

Lower ARPU, voice revenue, and less-than-sterling results are to be expected, for a few reasons:
1. The investment in Cell C's (mostly) awesome network cost billions, and will take time to recoup. But they're in it for the long-haul.
2. Interconnect rates came down, and thus interconnect revenue (read: profit) would be much lower
3. Excellent data pricing and some of the best data and call rates would result in lower ARPU.
4. Investment in beefing up Cell C's customer service, website, systems, call center, rebranding and marketing.

Eventually things will turn around for Cell C. Lars is doing a great job. Well done to Cell C. You still have my vote!
 
Last edited:
Not so many people really call now days it's all have been data all the way. Provide cheaper data packages and you will dominate.
 
May Cell C go from strength to strength. They have my vote for forcing the other two to drastically reduce their rates.

For this plucky move, I will remain a customer of Cell C.
 
ToxicWazte said:
2. Interconnect rates came down, and thus interconnect revenue (read: profit) would be much lower
Click to expand...
Was CellC not one of the companies that paid more than it received with interconnect rates, thus improving their position when the rates came down?

But CellC is busy with a very bold move, and for their sakes I hope it pays off. It is a make or break and they have no choice but to lure customers in at a very high rate to fend off the debt collectors for the network they rolled out. 8ta just made this a lot more difficult though.

But in the end the consumer is the big winner with the competition :)
 
So all operators (Including fixed line DSL) are reporting broadband data uptake. Seems like the masses in SA are jumping on the broadband wagon - so it does not seem like a huge churn from one network to the other.
 
ToxicWazte said:
Lower ARPU, voice revenue, and less-than-sterling results are to be expected, for a few reasons:
1. The investment in Cell C's (mostly) awesome network cost billions, and will take time to recoup. But they're in it for the long-haul.
2. Interconnect rates came down, and thus interconnect revenue (read: profit) would be much lower
3. Excellent data pricing and some of the best data and call rates would result in lower ARPU.
4. Investment in beefing up Cell C's customer service, website, systems, call center, rebranding and marketing.

Eventually things will turn around for Cell C. Lars is doing a great job. Well done to Cell C. You still have my vote!
Click to expand...

EBITDA excludes the 'investments' you mention. You would expect EBITDA to go up because of investment, not down.
 
Naturally, if Cell C is signing on customers for its data offerings we should expect better ARPU. Otherwise, it means that their voice revenue must be quite low for various reasons:
1. Spread of mobile broadband may mean that subscribers are using substitute voice services like VoIP - free skype etc.
2. Cell C has signed up more subscribers from the lower end market.
3. etc...
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X