Cell C, the third-biggest mobile operator is set to sell business assets over R9 billion ($596 million) debt. The Telco plans to sell its fiber-optic network and billed the customer base. It is alleged that Cell C plans to sell off part of its wireless frequencies to MTN Group Ltd.
Cell C has been operating in South Africa since 2001 but this is the second time that Cell C is on the verge of shutting down. In 2016, the Telco had to raise money through a funding round led by Blue Label Telecoms Ltd. In other news, it is alleged that China Mobile may be the one to rescue the indebted Company this time.
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Last month, Douglas Craigie Stevenson, the Chief Executive Officer of Cell C, said that the company is in talks with MTN about gaining more access to its network. This implies that the dominance of Vodacom and MTN in South Africa makes it difficult for smaller companies to successfully thrive.
Vodacom, Telkom SA, and the MTN group have indicated interest in buying Cell C’s assets. It’s also in talks with potential investors, led by Buffet Consortium to recapitalize the business and clear debts
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