New Cell C boss won’t start a price war
August 28th 2023
Newly appointed Cell C CEO Jorge Mendes has no intention of starting a price war with his bigger rivals in the telecommunications industry. Mendes, who was speaking to journalists on Monday for the first time since his appointment, said: “Discounting for the sake of being cheaper is not where we want to be,” he said. Cell C may have little other option, though. Fresh from its second recapitalisation – led by its largest shareholder, JSE-listed Blue Label Telecoms – management and shareholders will be wary of once again building unsustainable levels of debt on its balance sheet. “Ours won’t be a pure pricing strategy where we are cheapest in the market,” Mendes said. “We will do things slightly differently.” He said the company plans to shake up its culture, and that “in 18-24 months’ time, this will be a very different organisation” with a “much bigger valuation”. “There is still good brand value in Cell C. But we really need to make it a brand that South Africa loves,” Mendes said. Blue Label, meanwhile, continues to play a relatively hands-off role, despite its 49% shareholding and talk by Blue Label co-CEO Brett Levy of possibly buying control of the mobile operator soon.