Cell C is tempting, but still no signal from Telkom
SA's third-largest and debt-laden mobile operator is not listed on a stock exchange and does not update the market regularly on its earnings
Cell C is getting cheaper and cheaper for a possible suitor as its rivals' woes feed through to its own valuation, but the phone's not ringing yet. SA's third-largest and debt-laden mobile operator is not listed on a stock exchange and does not update the market regularly on its earnings, making it difficult to form an accurate picture of its financial state. But recent trading updates by market leaders Vodacom and MTN have shown how consumers are tightening their belts and, though data consumption is on the rise, the revenue it generates is hardly growing at all. It has always been difficult for more than two mobile operators to make decent profits in a market, and Cell C has been struggling for years against its larger rivals. Analysts believe the company needs scale to compete. The same goes for Telkom's mobile business. The fixed-line operator was rebuffed by Cell C two years ago. Telkom has had a good run since then - its share price is up more than 40% in the past six months a...
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