Investors ‘put off by high SA costs’

Sneeky

Sneeky

Honorary Master
Joined
May 5, 2004
Messages
12,180
Reaction score
2,742
Location
Durban
03 August 2005
International telecommunications company AT&T could be frightened off from making further investments in SA due to the high cost of doing business here, especially those charged by telephone utility Telkom, Parliament’s portfolio committee on labour was told yesterday.
Vic van Vuuren, chief operating officer of Business Unity SA (Busa), told the committee that a delegation from AT&T had recently visited SA. He said they had revealed that while they used Telkom for 2% of their business in SA it represented a total of 25% of their business costs in SA.
Click to expand...
He said the AT&T group said “if that was the cost of doing business in SA they were definitely not going to increase their investment here”.
Click to expand...
http://www.businessday.co.za/articles/economy.aspx?ID=BD4A76184
 
Last edited:
And there you have it, the bottom line for all business in SA. :(
 
Government and Telkom are basically telling investors to piss off.
 
Maybe AT@T are just looney, you know, in the same way that Icasa is and anyone is that points a finger at Telkom. The World according to White and Vapi.
Then again maybe not :)
 
Any normal company that causes this type of hype in parliment would be taken to task then and there.
 
Telecomunication costs and transportation costs are both too high in South Africa

Competitiveness as a country weakens,when those 2 major input costs of business reaches Exorbitant level.

unless problems are addressed swiftly ,SA will never achieve 6 % growth in our economy,the growth rate required to generate new jobs to meet the challenge of alleviating high unemployment rate in SA.
 
Sneeky said:
Any normal company that causes this type of hype in parliment would be taken to task then and there.
Click to expand...

Well, this isn't "any normal" company is it. This is Telkom and they own the communications space in SA. This makes me sick, how many people and how many organizations have to raise this issue of Telkom costs before the f**king govt will do something.
 
AFAIK, AT&T offered quite a few Billion in the early 90's for Telkom.
Of course the offer was rejected as the government had other ambitions.
But it would be interesting to see what might have been had AT&T taken over Telkom 10 or so years ago.
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X