{"id":49934,"date":"2013-11-24T23:01:03","date_gmt":"2013-11-24T21:01:03","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=49934"},"modified":"2013-11-24T23:05:16","modified_gmt":"2013-11-24T21:05:16","slug":"cell-c-hints-at-telkom-mobile-merger","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/mobile\/49934\/cell-c-hints-at-telkom-mobile-merger\/","title":{"rendered":"Cell C hints at Telkom Mobile merger"},"content":{"rendered":"<p>Acting\u00a0Cell C\u00a0CEO, Jose Dos Santos has hinted at a possible consolidation\u00a0between two of South Africa&#8217;s newest mobile entrants.<\/p>\n<p>Last week, Sipho Maseko, Group CEO at Telkom, admitted\u00a0that the Telkom Mobile business is going through \u201ca very difficult time\u201d, and is in discussions with\u00a0parties over future operations.<\/p>\n<p>Asked by\u00a0BusinesTech whether\u00a0Cell C is currently in discussions with Telkom Mobile over a merger,\u00a0Dos Santos, Cell C chief commercial officer, and Acting CEO said:\u00a0\u201cMarket consolidation is inevitable. Consolidation will help smaller operators build scale to compete more effectively with players that have significant market power.&#8221;<\/p>\n<p>&#8220;There is likely to be some form of consolidation or partnership in the industry. However, any decisions on consolidation or future partnerships involving Cell C would be for our shareholders to decide upon.&#8221;<\/p>\n<p>In July,\u00a0<a title=\"Cell C\" href=\"http:\/\/businesstech.co.za\/forum\/showthread.php\/1641-Cell-C\">Cell C<\/a>\u00a0CEO\u00a0<a title=\"Alan Knott-Craig\" href=\"http:\/\/businesstech.co.za\/forum\/showthread.php\/1642-Alan-Knott-Craig-%28Senior%29\">Alan Knott-Craig<\/a>\u00a0confirmed that the mobile operator had addressed talks of consolidation with\u00a0<a title=\"Telkom Mobile\" href=\"http:\/\/businesstech.co.za\/forum\/showthread.php\/8232-Telkom-Mobile\">Telkom Mobile<\/a>.<\/p>\n<p>Knott-Craig\u00a0suffered a minor stroke on Monday, 18 November 2013, and according to the mobile firm, was recovering in hospital.\u00a0&#8220;With regards to Alan, he is progressing well,&#8221;\u00a0Dos Santos said.<\/p>\n<div id=\"attachment_31089\" style=\"width: 610px\" class=\"wp-caption aligncenter\"><a  data-lightbox=\"post-image\" href=\"http:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2013\/02\/Jose-dos-Santos.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-31089\" class=\"size-full wp-image-31089\" alt=\"Jose dos Santos\" src=\"http:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2013\/02\/Jose-dos-Santos.jpg\" width=\"600\" height=\"400\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2013\/02\/Jose-dos-Santos.jpg 600w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2013\/02\/Jose-dos-Santos-300x200.jpg 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><p id=\"caption-attachment-31089\" class=\"wp-caption-text\">Jose dos Santos<\/p><\/div>\n<p><strong>Telkom Mobile plans<\/strong><\/p>\n<p>Speaking at Telkom&#8217;s results announcement in Pretoria last week, Maseko said he would continue to be \u201copaque\u201d around plans the group has for its mobile arm and derisking.<\/p>\n<p>\u201cWe are in conversation with parties around this on some possible options \u2013 and without saying much around it, in respect to parties we are in dialogue with around this.\u201d<\/p>\n<p>\u201cAt the right time we will announce who the parties are and what exactly we will be doing, but the team is in the middle of very sensitive conversations,\u201d Maseko said.<\/p>\n<p>\u201cI look around here and I see some of my bankers giving me a very nasty look. I\u2019m afraid I won\u2019t say much more than that.\u201d<\/p>\n<p>\u201cThe capital appetite will effectively be less, and hopefully it will cost us less going forward. That is how we are thinking about fixing the mobile issue,\u201d the CEO said.<\/p>\n<p>\u201cWe will be an integrated player, we will have all offerings around telco \u2013 so fixed and mobile \u2013 but we will do it in such a way that is capital efficient. That\u2019s what we are trying to do right now,\u201d Maseko said.<\/p>\n<p><strong>Two is better than one<\/strong><\/p>\n<p>Under the leadership of Knott-Craig, Cell C&#8217;s subscriber base has grown\u00a033% to 12.3 million customers in just 18 months to September 2013.<\/p>\n<p>In July 2013, Cell C revealed that it had 11.7 million subscribers on its network \u2013 a steady climb from 8.2 million users in 2011 and 9.4 million in 2012 \u2013 boosting its relative market share to over 17%.<\/p>\n<p>Knott-Craig has said that the company is targeting 25% market share in order to be profitable.<\/p>\n<p>Subscriber growth has, however, come at a cost, namely a deterioration in the\u00a0quality\u00a0of its network &#8211; a problem which Telkom could solve with its infrastructure.<\/p>\n<p>Telkom, meanwhile, would welcome Cell C&#8217;s subscriber base with its current total at a paltry\u00a01.6 million.<\/p>\n<h3 class=\"my-4\">More on Telkom and Cell C<\/h3>\n<p><a title=\"Telkom in talks over mobile arm\" href=\"http:\/\/businesstech.co.za\/news\/mobile\/49619\/telkom-in-talks-over-mobile-arm\/\"><strong>Telkom in talks over mobile arm<\/strong><\/a><\/p>\n<p><a title=\"Telkom and MTN in talks: report\" href=\"http:\/\/businesstech.co.za\/news\/mobile\/49866\/telkom-and-mtn-in-talks-report\/\"><strong>Telkom and MTN in talks: report<\/strong><\/a><\/p>\n<p><a title=\"Telkom dismisses Cell C merger talks\" href=\"http:\/\/businesstech.co.za\/news\/mobile\/40186\/telkom-dismisses-cell-c-merger-talks\/\"><strong>Telkom dismisses Cell C merger talks<\/strong><\/a><\/p>\n<p><a title=\"Cell C CEO Alan Knott-Craig suffers stroke\" href=\"http:\/\/businesstech.co.za\/news\/general\/49641\/cell-c-ceo-alan-knott-craig-suffers-stroke\/\"><strong>Cell C CEO Alan Knott-Craig suffers stroke<\/strong><\/a><\/p>\n<p><strong><a title=\"Is there space for Cell C and Telkom Mobile?\" href=\"http:\/\/businesstech.co.za\/news\/mobile\/46176\/is-there-space-for-cell-c-and-telkom-mobile\/\">Is there space for Cell C and Telkom Mobile?<\/a><\/strong><\/p>\n<p><a title=\"Cell C admits network \u201ctaking strain\u201d\" href=\"http:\/\/businesstech.co.za\/news\/mobile\/44595\/cell-c-admits-network-taking-strain\/\"><strong>Cell C admits network \u201ctaking strain\u201d<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Acting Cell C CEO Jose Dos Santos has hinted at a possible consolidation between two of South Africa&#8217;s newest mobile entrants.<\/p>\n","protected":false},"author":9,"featured_media":24323,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[43,42,26,4339,2414,65,1075],"class_list":["post-49934","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mobile","tag-alan-knott-craig","tag-cell-c","tag-headline","tag-jose-dos-santos","tag-sipho-maseko","tag-telkom","tag-telkom-mobile"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/49934","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=49934"}],"version-history":[{"count":10,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/49934\/revisions"}],"predecessor-version":[{"id":49976,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/49934\/revisions\/49976"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/24323"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=49934"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=49934"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=49934"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}