Cell C has clammed up on a possible deal to sell its national network of base stations to mitigate crippling debt.
Reports indicate the company is discussions with two international businesses: American Tower Corp and Eaton Telecom. However, Cell C will not confirm whether it has decided to sell its infrastructure to generate a financial cushion.
“Cell C is not in a position to comment at this stage. Should there be a development that we believe is in the public interest, we will issue a statement,” says Cell C's newly-appointed CEO, Lars Reichelt.
Both of the international businesses specialise in leasing telecoms network infrastructure and a deal could put Cell C back in the black.
The company has battled with debt troubles since its inception, and former CEO Jeffery Hedberg was on track to turn the situation around, when he decided to leave, in a move that surprised the industry.
Reichelt has also proved a strong character, delivering innovative ideas and unexpectedly announcing the company's plans to roll-out a 4G broadband network.
Cell C will fork out R5 billion for the new Internet capacity, and is sourcing the financing for the deal. Speculation has it that Cell C's plans to sell base station infrastructure may be part of the company's financing plans.
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