[ad_1]
Douglas Craigie Stevenson, CEO of Cell C
Cell C mobile operator it has net debt, excluding leases, on its balance sheet (before a planned recapitalization) of almost R10 billion, but it still wants to participate in the next South African spectrum auction.
That’s according to CEO Douglas Craigie Stevenson, who said in an interview with TechCentral on Tuesday following the release of the company’s interim results as of June 30 that he plans to apply to communications regulator Icasa and the government to allow it to lease access. to the spectrum instead of buying is in advance. He wants “creative models” that allow the company to participate alongside its bigger rivals.
Is it feasible for Cell C to participate in the auction? “It would be completely unworkable if I didn’t try,” Craigie Stevenson said. “As long as I’m building a future business and have a balance sheet that gets me started and can take value out of spectrum to bring my clients to another network … why should I be excluded from the spectrum race?”
Cell C is in the process of moving its radio access network (the RAN connects its base stations to consumer devices) to the South African unit of MTN Group, as it seeks to reduce capital expenditures and ensure it does not re-enter. in an unmanageable debt situation after the planned recapitalization involving its shareholders and lenders, which, according to Craigie Stevenson, is now near completion.
He said that he disagrees with the view that the large incumbent networks, namely Vodacom and MTN, should be the only ones to gain access to spectrum under the licensing process from Icasa, which will see spectrum auctioned in March 2021 to a cost to selected bidders. reaching billions of rand.
‘It marginalizes us’
“There are great opportunities here. I don’t want to be left out of the action. If I have to go to the government and ask for special treatment, (and tell them) that I have a sustainable business to be on the spectrum (licensing game), are you sure they have to at least listen to me? ” he said.
“What prevents me from going to Icasa and saying that I will have a completely different set of obligations? We have to be creative about it. I just don’t want to be excluded. That was the natural thought: ‘they don’t have money; they won’t be in it, ‘but that marginalizes us. “
Craigie Stevenson said that “nothing is set in stone” once the summary has been completed and Cell C begins producing what he called “new model” financial results. “I will gladly go sit down with the Icasa guys on the spectrum and have a long discussion (with Icasa CEO) Willington (Ngwepe) and the guys from the Competition Commission and say, ‘Why can’t I have access to the spectrum? ‘”- © 2020 NewsCentral Media
