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<p>&nbsp;</p>
<p>MTN has unveiled its new MTN BozzaGigs LTE product which it says gives customers exclusive pre-paid data bundles on the fastest and best network.</p>


ROOYMU

Telecom price wars: Which is the cheapest network?


<p>JOHANNESBURG (Reuters) &#8211; South Africa’s Blue Label Telecoms said on Tuesday that Cell C, in which it is the largest shareholder, had defaulted on the payment of capital on its $184 million note, which was due on Aug. 2.</p>



<p>Cell C, a mobile carrier, also defaulted on interest and capital repayments related to the respective bilateral loan facilities between itself and Nedbank Limited, China Development Bank Corporation, Development Bank of Southern Africa Limited and Industrial and Commercial Bank of China Limited.</p>



<p>These were due in January and July 2020.</p>


Cell_C_Mercedes_(9092759591)

South Africa’s mobile operator Cell C defaults on repayments on $184 mln bond

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<p>Joining CNBC Africa to discuss the mix of global and local market news is Mila Mfanyana, interim CEO and Head of Equities, Afena Capital.</p>


Telkom in talks to acquire Cell C but only on reduced gearing levels

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<p>Blue Label was once the darling of the JSE, but a bad investment in telecoms company Cell C has given Blue Label its first operating loss in 20 years of business. CNBC Africa&#8217;s Kopano Gumbi spoke to joint CEO, Brett Levy.</p>


Blue Label admits Cell C was a bad investment

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<p>With both Net1 &#038; Blue Label impairing their Cell C investment to nil for their year ends, CNBC Africa’s Fifi Peters asked Henry Biddlecombe, an Analyst at Anchor Capital, whether he would be buying Blue Label?</p>


Blue Label impairs Cell C investment to nil for year end, is it time to buy?


<p><em>Early this morning media reported that Cell C had appointed Bowmans to investigate any parts of the business where the mobile operator suspects that there may be irregular business practices and hired PwC to do a full procurement audit and review of its processes. As a result Blue Label&#8217;s share price plunged by almost 13 percent to R3.40. Blue Label holds 45% stake in Cell C. Below is the letter on which the reports were based.</em>   </p>



<p>By Douglas Craigie Stevenson, Chief Executive Officer (Interim), Cell C </p>



<p>I was appointed in March 2019 as the interim CEO with the clear mandate from the Cell C  Board to right-size and optimise the business.  There was an acknowledgement that the company faces, and continues to face, financial and other challenges.   </p>



<p>In an intensive 120-day period our new leadership team has a clear direction and have focused on ways to:   Execute and implement a new business plan, aimed at simplifying the business model;  Pursue a recapitalisation to optimise the capital structure;   Extract greater value from our existing roaming agreement; and   Optimise network revenue and usage. </p>



<p>The goal for Cell C is to become significantly better focused on operational performance, sound business ethics and accountability throughout the business. </p>



<p>Our efforts to improve the financial management of the business were enhanced in December 2018 with the board appointment of a new CFO, Zaf Mahomed, who has extensive business and finance experience. The financial results for Q2 2019 are showing some promising improvements to the bottom line, based on the measures taken since March 2019 to right-size the business.  We have also appointed Deloitte as independent financial restructuring advisors to assist  in optimising business processes.  The company continues to face real challenges and we are in active discussions with our stakeholders with a view to achieving a secure financial position.  In the interim, I can report the following:  </p>



<ol><li>We have implemented a wide range of initiatives across the business to improve and meet the requirements of the King IV Code of Corporate Governance, including driving greater transparency to the board. The executive directors have had positive engagements with all major stakeholders.    </li><li>We have appointed attorneys Bowmans to investigate any parts of the business where we suspect that there may be irregular business practices and have also hired PwC to do a full procurement audit and review of our processes.  </li><li>The new executive team, along with our new management committee is completely aligned with Cell C’s priorities and has committed to ensure changes that are necessary to deliver on the new business strategy. </li><li>We have implemented significant austerity measures and have cut costs which do not contribute to revenue generating activities, including a review of all contracts to ensure alignment with business priorities and a hiring freeze.  </li><li>We have engaged in discussions with our staff and the company’s union in an open and      transparent manner and adhering to all legal requirements.  To this end we have: &#8211; Appointed a new HR Executive, Juba Mashaba, with strong human resources and industrial relations expertise and Juliet Mhango in the role of Human Capital Development and Transformation Executive; &#8211; Focused on stabilising relationships with our labour force, and implemented a signed recognition agreement and formal engagement structures;  &#8211; Actively communicated with employees on the direction and state of the business;  &#8211; Re-emphasised that non-compliance with policies and procedures will not be tolerated;   &#8211; Taken meaningful steps to inculcate a transparent performance culture aligned with the business strategy; &#8211; Cell C has a zero-tolerance policy towards illegal or unethical activity and have encouraged employees to use the independent whistle-blowers service to anonymously report irregularities or illegal activities. </li></ol>



<p>We are also strengthening our board with independent non-executive directors in line with the King IV Code of Corporate Governance. </p>



<p>I want to emphasise that Cell C is strategically positioning itself and we are using our best efforts to be a strong participant in the industry, I firmly believe we are on the right track.   </p>



<p>Yours sincerely</p>



<p>Douglas Craigie Stevenson Chief Executive Officer (Interim)</p>


Open letter by Cell C’s new CEO Douglas Stevenson

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<p>Technology company Blue Label Telecoms has had a difficult year, with almost 30 per cent of its market value being wiped out in the first quarter. But Co-Founder and CEO Mark Levy, told CNBC Africa’s Kopano Gumbi why a bad share price doesn’t mean a bad business.</p>


Blue Label’s Mark Levy on why bad share price doesn’t mean a bad business

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<p>South African users of data packages will have to hold on a little longer as the independent communication authority of South Africa has extended the deadline for certain networks to implement the roll over data service. This service will enable data users to transfer unused from one month over to the next without worrying about data expiration. The deadline for the change of legislation was scheduled for today however the ICASA board has extended the deadline for certain networks.  ICASA has extended the date for the implementation of the regulations to 12 April 2019.</p>


Roll over data costs regulations postponed

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<p>Junaid Munshi, Chief Commercial Officer at Cell C joins CNBC Africa to touch on all things big and small shaping the new telecoms playground.</p>


Tracking trends shaping the SA’s telecoms industry

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<p>Tony Walt, Chief Solutions and Operations Officer at Internet Solutions shares his insights into what measures the South African government should take to bring down high data costs.</p>


Internet Solutions’ Tony Walt on how to bring down SA’s high data costs

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<p>The Competition Commission&#8217;s inquiry into high data prices has left the telecoms sector at odds with various state entities. Submissions from various Mobile service providers are stubborn in saying that data prices in South Africa are competitive and that rates cannot be lowered due to cost factors.</p>


ANC outlines its position on data costs in SA

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<p>Competition Commissioner Tembinkosi Bonakele speaks to CNBC Africa on what the Competition Commission is doing to protect consumers from exorbitant data costs in the country.</p>


Competition Commissioner Tembinkosi Bonakele gives update on inquiry into high data prices

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<p>CNBC Africa&#8217;s Lubabalo Mashiqana has been following the proceedings of the Competition Commission inquiry into high data prices in the country. He caught up with the Telkom CEO, Themba Maseko to about tackling high data prices in South Africa.</p>


Telkom CEO Themba Maseko on tackling high communication costs

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<p>Cell C announced plans to more than double spending on its network this year as it embarks on an acquisition spree that’s already taken in local fibre providers IConnect and Greencom.</p>


Cell C plans to double spending after Blue Label deal

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<p>Cell C unveiled its set-top box for video streaming; the company also introduced a range of low-cost prepaid data bundles to allow users to stream content from its new Black video-on-demand platform.</p>


Cell C takes on DSTV, HCI with set- top boxes

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<p>Blue Label Telecoms is now a 45 per cent shareholder of network operator, Cell C. The stake is through its subsidiary, The Prepaid Company. Joining CNBC Africa is Mark Levy, joint CEO of Blue Label Telecoms.</p>


Blue Label Telecoms completes 45% stake acquisition of Cell C

<p><span class="articleLocation">JOHANNESBURG</span> (Reuters) &#8211; Net1 UEPS Technologies will invest 2 billion rand ($153 million) for a 15 percent stake in debt-ridden South African mobile operator Cell C, scaling back its commitment in the original deal to take over the company.<span id="midArticle_byline"></span></p>
<p>Net1, a payments company with extensive operations in emerging markets, is part of a group led by Blue Label Telecoms, an airtime distributor, working to cut Cell C&#8217;s debt to 6 billion rand from around 20 billion.</p>
<p>Net1 has however dropped its plan to take a stake in Blue Label as part of the deal.</p>
<p>Cell C, the number three mobile operator in Africa&#8217;s most advanced economy, has struggled the past decade to compete in a mature market where Vodacom and MTN hold sway.</p>
<p>&#8220;Net1 and Blue Label have agreed that Net1 shall confine its investment to a total amount of 2.0 billion rand, which will be invested into Cell C,&#8221; Blue Label said in a statement.</p>
<p>Net1 will no longer subscribe for the Blue Label shares, both companies said in separate statements.</p>
<p>Net1 had previously said it would buy 2 billion rand worth of Blue Label shares and pay a further 2 billion rand for a 15 percent stake in Cell C.</p>
<p>The airtime distributor said it has signed agreements with other investors to take Net1&#8217;s place and subscribe for 2 billion rand worth of Blue Label shares.</p>
<p>Blue Label said last year it would pay 5.5 billion rand for a 45 percent holding in Cell C, a company founded in 2001 by Saudi Arabia&#8217;s Oger Telecom and former director Zwelakhe Mankazana. ($1 = 13.0715 rand)</p>
<p>(Reporting by TJ Strydom; Editing by Keith Weir)</p>


Cell C

Telecom price wars: Which is the cheapest network?

South Africa’s mobile operator Cell C defaults on repayments on $184 mln bond

Telkom in talks to acquire Cell C but only on reduced gearing levels

Blue Label admits Cell C was a bad investment

Blue Label impairs Cell C investment to nil for year end, is it time to buy?

Open letter by Cell C’s new CEO Douglas Stevenson

Blue Label’s Mark Levy on why bad share price doesn’t mean a bad business

Roll over data costs regulations postponed

Tracking trends shaping the SA’s telecoms industry

Internet Solutions’ Tony Walt on how to bring down SA’s high data costs

ANC outlines its position on data costs in SA

Competition Commissioner Tembinkosi Bonakele gives update on inquiry into high data prices

Telkom CEO Themba Maseko on tackling high communication costs

Cell C plans to double spending after Blue Label deal

Cell C takes on DSTV, HCI with set- top boxes

Blue Label Telecoms completes 45% stake acquisition of Cell C

Net1 caps investment in South Africa’s Cell C at 15% stake

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Advertise With Us

Cell C

Telecom price wars: Which is the cheapest network?

South Africa’s mobile operator Cell C defaults on repayments on $184 mln bond

Telkom in talks to acquire Cell C but only on reduced gearing levels

Blue Label admits Cell C was a bad investment

Blue Label impairs Cell C investment to nil for year end, is it time to buy?

Open letter by Cell C’s new CEO Douglas Stevenson

Blue Label’s Mark Levy on why bad share price doesn’t mean a bad business

Roll over data costs regulations postponed

Tracking trends shaping the SA’s telecoms industry

Internet Solutions’ Tony Walt on how to bring down SA’s high data costs

ANC outlines its position on data costs in SA

Competition Commissioner Tembinkosi Bonakele gives update on inquiry into high data prices

Telkom CEO Themba Maseko on tackling high communication costs

Cell C plans to double spending after Blue Label deal

Cell C takes on DSTV, HCI with set- top boxes

Blue Label Telecoms completes 45% stake acquisition of Cell C

Net1 caps investment in South Africa’s Cell C at 15% stake

News Tips

Advertise With Us

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