More Telkom price cuts due?

They had to file with the SEC - potentially there could be but I dont think any time soon.
 
Telkom, which axed more than 31 000 of its workers, expected its workforce to grow again in the future, and this, also, would also weigh on expenses.
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How can they so ruthlessly compare the livelihood of people to their expenses. One would think that with R10billion per annum in profits that they can afford to employ those 31000 people again. Yet they're making it seem as though they would go bankrupt. Not to mention an improvement in service levels that this would bring about.
 
Firing and rehriring people costs a LOT of money. I would hope someone in Telkom HR is going to get their ass kicked over the fact they couldn't project the number of employees needed (although every one else could see Telkom's service would go down the toilet) but seeing this is Telkom I expect they actually got a sweet bonus instead.
 
Highflyer_GP said:
How can they so ruthlessly compare the livelihood of people to their expenses. One would think that with R10billion per annum in profits that they can afford to employ those 31000 people again. Yet they're making it seem as though they would go bankrupt. Not to mention an improvement in service levels that this would bring about.
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Well put - they have been the most negligent company in respect of human needs IMO. Totally disregarding the well-being of all the people who built it up over the years... and I'm talking about those people who are actually doing the work - not the big-knobs who just skim the cream. Shareholders are to blame as well IMO since they are never heard when Telkom have taken advantage of their monopolistic situation.
 
Skip said:
Firing and rehiring people costs a LOT of money. I would hope someone in Telkom HR is going to get their ass kicked over the fact they couldn't project the number of employees needed (although every one else could see Telkom's service would go down the toilet) but seeing this is Telkom I expect they actually got a sweet bonus instead.
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I'm sure a lot of individuals, never mind unions, will look forward to renegotiating serious salary increases ...
 
Onepostwonder said:
Well put - they have been the most negligent company in respect of human needs IMO. Totally disregarding the well-being of all the people who built it up over the years... and I'm talking about those people who are actually doing the work - not the big-knobs who just skim the cream. Shareholders are to blame as well IMO since they are never heard when Telkom have taken advantage of their monopolistic situation.
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and yet they are members of PSA. Just goes to show.
 
Moederloos: Who wants to take a bet that when Telkom starts to rehire they'll force PSA to take out a full page ad in the Sunday Times commending them for 'creating new jobs'?
 
On the other hand, cellphone penetration climbed from just 2.4% in 1997 to about 71% at the end of March this year, stated the filing.
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I don't know. I'm not one of them smart-assed marketing macky types, but if I was working for telsuck I would have started asking myself why this is happening, and how can we compete with them, long ago. This being telcomic though, they just dont give a flying fuc... fig.
 
Gru said:
I don't know. I'm not one of them smart-assed marketing macky types, but if I was working for telsuck I would have started asking myself why this is happening, and how can we compete with them, long ago. This being telcomic though, they just dont give a flying fuc... fig.
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With a 50% stake in Vodacom, competition is not required. In fact, driving land-line users into the waiting arms of the MUCH MORE EXPENSIVE cellphone operators, of which you own the lion's share of the market, seems like a damn fine idea...

J
 
Highflyer_GP said:
One would think that with R10billion per annum in profits that they can afford to employ those 31000 people again.
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Just a technicality, if I'm not mistaken that's net profits after tax; since they actually make much more than that in operating profits and employees' salaries are a deductible expense the amount they theoretically "have available" to hire people is quite a bit higher than R10bil/year.
 
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sheesh... this could be the second price drop since i ordered adsl for home.
probably by the time they've installed the line (well, update the exchange so i can get a port) i'll actually be able to afford it!
either that or the sno will have a residential service up and running... too close to call
 
We are supposed to be in a first world telecoms country, and yet we cannot even install a telephone in a decent time of frame. In other countries you can phone them and have your phone in the same day and still choose your number.
 
jontyB said:
According to this Article yes? Telkom seem to be on the defensive about it's financial outlook
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Not exactly, companies listed in the US are simply legally required to disclose potential risks to investors, and a small possibility of competition for Telkom is one. So all Telkom is saying here is that they *might* get competition sometime in the future, and that IF they do, they might possibly have to maybe respond with a lowering of prices and decrease in margins (which is kind of like "well duh, no sh*t"). There is certainly no price cut "on the cards", these kind of stupid headlines make me sick.
 
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