Net1 UEPS Technologies has become the second JSE-listed company, after Blue Label Telecoms, to delay publication of financial results because of the ongoing financial woes at Cell C.
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Just days after news emerged that Cell C was pulling the plug on its wholesale fixed-LTE broadband plans, MTN South Africa has stepped into the breach, offering high-capped packages at aggressive price points.
Cell C has stopped broadcasting the linear channels on its Black video-streaming service as the struggling mobile operator continues a major review of costs in its business.
General chaos ensues on the podcast this week as Duncan McLeod and Regardt van der Berg are joined by Louis Du Pisani, the CEO of the company behind the South African videogame Boet Fighter.
Cell C has moved to justify its decision to terminate its wholesale fixed-LTE offering, saying customers of the service made up just 0.5% of its base but were using 20% of its data network capacity.
Cell C has issued a formal notice to its wholesale partners, including Internet Solutions, stating that it will terminate wholesale fixed-LTE services, potentially leaving thousands of retail customers in the lurch.
S&P Global Ratings has downgraded Cell C’s debt to “D”, or “default” – its lowest-possible “junk” rating – after the mobile operator “failed to make interest payments on certain bilateral loan facilities” due last month.
Cell C’s largest shareholder, Blue Label Telecoms, will delay publication of its full-year financial results until late September to deal with various issues related to the mobile operator’s recapitalisation and restructuring.
Regulators, including Icasa and the Competition Commission, will have to be pragmatic and lenient about a looming expanded tie-up between Cell C and MTN South Africa if the former isn’t going to go to the wall.
Cell C said late on Thursday that it is up to date with all payments to MTN South Africa for its national roaming agreement.