Comments on: Analysts laud Cell C for tower sale plan

By: Wogan

Wogan — Sat, 20 Mar 2010 14:12:16 +0000

@Joe Blogs “Telecommunications analysts don’t know anything!”

How much do you want to bet that those very same telecommunications analysts felt the exact same way about other professionals before they were employed?

~ Wogan

By: Joe Blogs

Joe Blogs — Thu, 18 Mar 2010 09:15:14 +0000

Thurifer, I think we need to send consulting fees to Delta Partners…

By: Thurifer

Thurifer — Wed, 17 Mar 2010 11:27:43 +0000

This is very interesting when compared to the article on MTN opening its network to other operators.
A lot of MTN’s upgrades I’ve noticed in the northern suburbs of JHB have been onto existing Cell C base stations!
In this case, why would Cell C want to sell? Heck, let Neotel also hop on for the ride and increase profits.
Don’t forget Cell C are supposed to be building a 3G network this year, so why spend that money then sell off?
My prediction is that operators may choose to sell off base stations in the next 5 years, then realise it was a mistake as relationships sour, then return to in-house (and more control)
Just look at the mess with MTN’s billing since outsourcing to IBM!

By: Joe Blogs

Joe Blogs — Fri, 05 Mar 2010 15:29:27 +0000

And that advice is free!

By: Joe Blogs

Joe Blogs — Fri, 05 Mar 2010 14:42:36 +0000

And another thing… Telecommunications analysts don’t know anything!

If our market is going to hot up, providers will be begging Cell C to use the infrastructure. Even if poor (it will be cheaper). Cell C can use this to build themselves a strong enough army to take on the Vodacom and MTN’s of the world!

By: Joe Blogs

Joe Blogs — Fri, 05 Mar 2010 14:40:07 +0000

One more thing, keep the existing infrastructure, if there are really “so many other operators” looking to take this route then Cell C can generate revenues from these other operators should they own it!

Also, all future towers can be financed on leasing terms to avoid additional pressures!

Stick it through, you will see the rewards later!

By: Joe Blogs

Joe Blogs — Fri, 05 Mar 2010 14:35:44 +0000

How long does an antenna last for? Why not issue bonds of some sort or some other sort of debt instrument that requires the capital portion to be paid at the end of term?

By selling the equipment they are going to be losing a great deal of value… Whoever is buying the equipment already has a customer! Christmas time is here!

Not only that but the US firm will have a good foot to introduce a network of their own, especially with the interconnect fees coming down! Operational or financial lease?

I think Cell C need to bite the bullet and stick it through… Refinance the debt… Take out bonds, give yourselves 5 years to start making serious profits. It is going to require a greater effort but it will be worth it if it works.