Cell C has pointed our attention to some errors in our recent article, “Cell C considers layoffs in pursuit of sustainability,” which was published on 17th January, 2024, that need to be clarified and corrected. We appreciate the timely response from Cell C and would like to provide accurate information to our readers.
Layoffs as Part of Push for Sustainability
In contrast to what we previously reported, Cell C disputes that there are currently no plan for layoffs. The corporation claims that there are no current talks or intentions for such actions and that the last restructuring, including Section 189, took place in 2020–2021. Rather, Cell C is concentrating on increasing resources, developing capability, and preparing for expansion to effectively carry out its plan.
Misplaced Attribution of Losses and Financial Difficulties to Layoffs
Our earlier article claimed a connection between probable layoffs and past financial difficulties and losses. Contrary to this, in a linked press release, Cell C highlighted their financial performance and strategic journey. It was stated in the release that Cell C in Q3 2023 “saw overall revenue growth of 1.5% amounting to R50 million compared to Q3 ’22. This increase has been driven by improved execution for Prepaid, and continued growth in Wholesale, Postpaid and Equipment sales.” And Q3 2023 marked the first quarter where Cell C has notable growth in revenue when compared to previous year.
Application to Improve Cell C’s TPC Shareholding
The Prepaid Company (TPC) and Cell C have submitted an application to regulatory bodies seeking permission to raise TPC’s ownership of Cell C by 4.04%, from 49.53% to 53.57%. Cell C highlights that this increase is a calculated move meant to improve the company’s long-term viability and growth opportunities.
This change in shareholding requires approval from the Competition Tribunal and the Independent Communications Authority of South Africa (ICASA) to comply with applicable laws.
ICASA Authorization
Cell C makes it clear that although TPC will control more than 50% of the company’s shares, Cell C will still be the owner of its spectrum licenses, Electronic Communications Services (ECS), and Electronic Communications Network Services (ECNS). Cell C shall maintain its provision of the services, and the licenses shall not be assigned to any other entity.
Competition Tribunal Approval
Following an inquiry and recommendation by the Competition Commission, TPC and Cell C must also receive clearance from the Competition Tribunal for the deal. Cell C is going through a change in shareholding and that the licensee’s control will change as a result of TPC acquiring an extra 4.04% of the company. Cell C will, nevertheless, carry out its license requirements and keep offering services under license.
We recognize the value of truthful reporting and would like to thank Cell C for providing these details. We retract the original story and apologize for any confusion it may have created in light of the updated facts. We are steadfast in our goal to deliver honest and trustworthy information.
