Following a drop in contract mobile connections Celltalk goes into administration. After complaining about ‘increased competition from the networks and more difficult trading conditions,’ Celltalk said, ‘reduced revenues have meant continuing losses’. This has lead to its’ UK call centre being made redundant and operations being outsourced to South Africa.
The devastation of operators withdrawing from ‘distance’ sellers relying on outbound calls is exemplified through redundancies at Dial-A-Phone.
’In the event of a sale, the Board are of the view that the proceeds, if any, are likely to be substantially below the Group’s current market capitalisation,’ warned directors at Celltalk; who appointed Begbies Traynor to handle a trade sale of the business if possible, or shut it down.
Celltalk’s stock has fallen about 13p this year and was worth as much as 140p at the end of 2000.
Celltalk’s shares have fallen to 2p, giving the business a value of £486,000.
Unsolicited texts were distributed by Celltalk, inviting mobile users to upgrade their handsets through its MobileUpd8 brand. The company’s Clubmobile online presence was unavailable as Mobile Business Magazine ran this story. Customers who clicked on links to 3phones.com, a former Celltalk brand, found themselves directed to a site run by online rival MobileShop.com.