More pending Cell C's capital expansion and business reorganization and restructuring are the last opportunity for a company that has financial difficulties to fix itself and gain a solid competitive edge.
"We do not have to take this opportunity again, and we have to do it right," interim CEO Douglas Craigie Stevenson said in an interview late Thursday.
Craigie Stevenson, who recently replaced Jose Dos Santos, South Africa's third-largest mobile service provider, will drop significantly on Thursday, the company's largest shareholder, Blue Label Telecoms.
In this letter, Cell C told law firm Bowmans that he "hired PwC to investigate all aspects of the business suspected of having irregular business practices and to review the full procurement and process." He also appointed Deloitte as an independent financial coordinator supporting "business process optimization." The company "is confronted with a real challenge" and "actively discusses" with its stakeholders to achieve a secure financial position.
"We have reduced costs that do not contribute to monetization activities, including enforcing critical austerity measures and reviewing all contracts to ensure alignment with business priorities and freeze employment.
I was afraid.
Investors who invested in Blue Label worried that C cell had appointed Bowmans because it identified a serious problem that would require a forensic investigation. But that's not the case, Craigie Stevenson said in an interview with TechCentral.
"This should be seen in the context of Bowmans, PwC and Deloitte." "As a new executive, we want to ensure organizational clarity and transparency, PwC advises on the procurement process in Cell C. Bowmans will provide general legal advice and Deloitte will support capital expansion. Craigie Stevenson said nothing was there.
"There is not much to explain, I have brought them all so that I can get the right things." There is a lot of mystery, speculation and things around this company and its surroundings, nothing specific (Bowmans was asked to investigate) I am looking at the field. I have a view of the whole business so I can give the right person advice "
Especially in the role of PwC, he said that someone with "fresh eyes" wants to see the company. "This company has been around for 19 years, and its operations have been here for a long time, I want to make sure I have a view on the business turnaround, you want someone with fresh eyes and someone to challenge the management and pray for the management. "
He said Cell C should be "empowered" and optimized. "We want to think differently about our business," he added. Employment freeze is now in place, but granting these rights does not threaten jobs, but employees must be trained in new areas. "We want to grow our business, it's not about job loss, we have other jobs but no jobs."
The top priority in solving the challenges of Cell C and building a platform for growth is to complete the company's capital expansion. A discussion is under way with Jonathan Beare's Buffet Consortium. The final term report is expected in the next month, which is expected to close in October or November. "There is no big deal to finish the negotiations," he said.
Next in the priority list is the business turnaround and ensures that you spend your money in the most efficient way possible. Craigie Stevenson said constant attention to cost management is important, and external consultants will play an important role here. "We need a lot in terms of our contract, and we have to challenge ourselves."
& # 39; Forced & # 39;
"When we post capital increases, we need a business that is ready to grow. This is a very capital and cost intensive business, and we are now forced to make the right decisions because of our capital structure."
One of the areas where you can shrink your spending is the video streaming service of Black, Cell C, which did not meet your expectations.
"We will not pick black plugs, but we will use them as a mechanism to increase and decrease product value when we lower our investment value and enter an integrated value environment," he said. "It does not work standalone, but it has to be integrated into the product set. Black people could do better."
Cell C will also invest more effectively by investing in "a platform that can create value-added services," he said. "The CAPEX stack has to jump beyond the core mega-minutes."
He acknowledged that it would be difficult for the telecom regulator Icasa to participate in the upcoming spectrum auction. He said the company is hopeful about the government's plan to create a wholesale open network or Woan that still wants to participate. Even if Cell C does not participate in the spectrum auction, he still adds additional spectrum through the roaming array using MTN.
Meanwhile, the planned list of Cell C, championed by Craigie Stevenson's predecessor, Dos Santos, is now on the back burner. "List this business when you can extract the value of this business. Execution in the business must be set first." – © 2019 NewsCentral Media