Telkom Moves To Entrench Its Position

Telkom vs Telkom, let them find out for themselves...
 
Splitting Telkom up may well be a great idea. I reckon we lobby to get rpm made CEO of one of the splits. :D MaD can have the other one. :p

I don't see what the problem is with Telkom getting bcx if they pay enough. I'd love to see Telkom come into a truly competitive market like IT. The other companies would look at Telkom's offerings of an entry level PC for only R12k (with only a certain amount of CPU cycles per month) and crush them. Good fun.
 
AntiThesis said:
I don't see what the problem is with Telkom getting bcx if they pay enough. I'd love to see Telkom come into a truly competitive market like IT.
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"Could Telkom resist offering discounted telephony to a big corporate client, in return for a juicy IT outsourcing contract?"

I think this is the issue. As a monopoly in the fixed line arena is has an unfair advantage...packaged deals and all...
 
This is called vertical integration...

Selling the service of bringing a cable into the building of a client and taking care of all the other problems upto training users in basic PC skills.

In this case I agree that it will provide Telkom with untold power to crush anyone else in the market.

Personally I'm of opinion that due to the current distortions in the market, primary telecoms operators (Telkom, SNO) must be restricted to providing primary services only. This means that Telkom should get rid of TelkomSA.net etc.
 
The second network operator will come on stream soon and the cellular operators, which have been eating away at Telkom's voice revenues for some time, are now aggressively competing for broadband subscribers, too.
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Excuse me, but at R499/gig how are they competing with telkom for anyone using over 2Gig. :confused:
 
Why not go the route they went in the states, break Telkom up into various regional operating companies, a long distance company, retail ISP, SAIX etc. all competing against each other. Then unbundle the local loop, allow all ISPs to self-provision, open up SAT3 and watch prices plummet.
 
rpm said:
"Could Telkom resist offering discounted telephony to a big corporate client, in return for a juicy IT outsourcing contract?"

I think this is the issue. As a monopoly in the fixed line arena is has an unfair advantage...packaged deals and all...
Click to expand...

I suppose that's true. Perhaps the best way to go is to simply scrag Telkom and go from there. Let the whole thing just go into around 40 smaller telecoms
companies all vying for the market.
 
"One option is to break up Telkom."

one can not find a chopping knife large enough to chop this dinosaur - I dont think we will have anti-trust laws in SA,anytime soon.

We can only hope it can be lured into evolution, here is a bait

Recently the investors are selling Telkom shares and reportedly buying MTN shares.

If Vodacom were an independently listed JSE company ,I think investors will opt to sell Telkom and buy Vodacom ?

The point is Telkom would still have their(investors) money ,just in a different pocket ,Isnt it ?
 
AntiThesis said:
Splitting Telkom up may well be a great idea.
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Splitting up Telkom won't help unless the market is liberalised. We need a free market.
 
Splitting Telkom up IMO is the best solution to our woes. 100% in agreement there with Duncan and others. Government is mistaken if it thinks Telkom is the goose laying golden eggs. Telkom is the jackass dropping big round ones on us all that probably in the moonlight gets mistaken for gold by our inexperienced government. The true gold is what we will get when the telecoms market is experiencing true competition in TRUE market conditions where anybody who can provide a service, should provide a service. Currently we are stuck in a situation where laws are so prohibitive that the folks who should be doing the job Telkom isn't doing are prevented from doing so.

The only reason things are moving along so slowly is because we have total nincompoops at the helm of things. This has got nothing to do with the new South Africa. There are plenty of qualified people out there that have the required knowledge and vision, but we are stuck with idiots in the power seats who cannot tell the difference between a network cable and their BMW’s gear lever.
 
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Well as much as Telkom say they are more than a Telephone company, there in is the rub... it is what they should be, and anything more should be chopped up and sold off

More over the only thing that Telkom should become is an infrastructure of the future, of which they seem to have an uncanny habit of missing the boat with great gusto

The damage they have caused to SA is vast... and the problem is that their report card, namely the year end balance sheet... fools most

The funny thing is, as far back as 1999 and since, they (Telkom) have been pointed out (to government) as been a major stumbling block to economic growth

Talk about flogging a dead horse....

What was that line...

They are not listening, they're not listening still, perhaps they never will
 
Syndyre said:
Why not go the route they went in the states, break Telkom up into various regional operating companies, a long distance company, retail ISP, SAIX etc. all competing against each other. Then unbundle the local loop, allow all ISPs to self-provision, open up SAT3 and watch prices plummet.
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That was a good move, but unfortunately they later removed regulations that prevented reconsolidation. The US is heading back to where they started, except with a couple of major players instead of just one. However due to this consolidation, in many areas there is only one provider and you're stuck with them. Naturally they charge high fees, relatively, and provide extremely poor service.

The US also used to have regulations preventing a single company from owning too wide a range of media outlets. Mass ownership now gives a handful of companies ownership of all media outlets, print, radio and TV.
 
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