Johannesburg - Cellular telecoms company Cell C has said it is restructuring its reseller network, a process that will see some existing franchisee agreements being discontinued.
CEO Lars Reichelt said the restructuring is at an early stage and is aimed to improve the company's distribution.
"We looked at our ability to service customers better and we've reviewed contracts, with some already expiring," Reichelt said. "Some of the existing franchisees will stay on and take on larger numbers, some new parties will be introduced, and others will no longer be part of the game."
He explained the company would be working with resellers that would help Cell C gain better economies of scale.
"[Some franchises] will essentially stay in the network, but will not be managed by their original owners," Reichelt stated.
Cell C is also in the process of rolling out network infrastructure with Chinese partner ZTE and has aid it will spend over R5bn in doing so this year.
- Fin24.com