Without Vodacom, Telkom looks in trouble

Doesn't bring the slightest sympathy to my emotions. So what if they dropped a few percent? Greedy beyond compare! :p
 
Seems like things are only going to get worse for Telkom too. VOIP usage is increasing, competition in the data market is increasing and in a few years everything's going to be data anyway. Of course selling Vodacom will give them a massive cash injection that they could use to improve their position. If they don't do it soon though then they'll have missed their chance I think.
 
I guess the profits can only go up when you cut jobs and don't service the poorer areas. Why actually offer affordable service to many when you can just milk the few who can "afford" it? So now those reduced numbers in the fixed line arena are finally coming to bite Hellkom in the ass. :D
 
Telkom should sue! Mr Profit you are hereby summoned to appear in the Johannesburg high court!

The good times are over baby, American companies have learnt for the last 20 years to not put shareholders above the future of the company, Telkom's going through that learning curve right now.
 
It has long been known that Vodacom is the only jewel in Telkodemonopolies' crown, and that both Vodacom and Vodafone are not happy about it.

I wish Telkodemonopolies would just get on with selling off its 50% of Vodacom - when|if that happens the telecoms landscape will start to change rapidly & drastically.
 
I'm crying a river here..


of laughter. Yea Telscum.. very easy when you're the only player. I remember when they posted massive profits, and Telkom was vanilla ice cream. Now they are starting to lose their flavour... hahaahha. Instead of investing some money into their infrastructure, they just wanted to show everyone profits.
 
ebudae said:
I guess the profits can only go up when you cut jobs and don't service the poorer areas. Why actually offer affordable service to many when you can just milk the few who can "afford" it?
Click to expand...

Why indeed, this is the capitalist way. If there is regulatory requirement, enforced with meaningful financial penalties then business will make changes*. Otherwise no there is no incentive to do it. People with no money, pay no money, so you can't make any money.

This fuels the trend we see - rich richer, poor just left where they are.

*Usually after several years in court arguing that the proposed regulation is unconstitutional. The rich companies with expensive lawyers often overturn regulation at the expense of providing service to the poor. Its the way we've set the system up.
 
Telkom should survive

In my opinion Telkom (fixed line side) has always been severly under valued. Telkom has never been solely a data company and has its fingers in many pies. Take the PABX environment. At the mo Telkom has pretty much 80% of the market and this in a deregulated environment. It has been competing with a host of companies locally for well on 20 years now and they have done very well.
I dont know if other companies have operations centers coming anywhere close to Telkoms NNOC (National Network Operations Center)....it certainly is impressive, whether it gets used to its full potential is another question all together.
Consider how many telephone exchanges are situated thoughout the country.....I find it very hard to see how the likes of Neotel can even get close to proper fixed line penetration as we know it.
I would imagine that a lot of the current profit margin in Talkom is being spent on infrustructure....as I type here, they are hauling a massive 420 fibre cable between Birdswood and Arboretum in Richardsbay....and this in my eye is not really a core area.
In conclusion....I think Telkom should survive.....I think its approach in many cases needs to change.
 
Numerous equity analysts remain bulish about Telkom moving forward and I agree with Leftfoot that they have fingers in so many pies that much the same as Barloworld, an unbundling would realise true investor return. This is why Telkom are looking at selling off its fixed line business as far as I hear. I dont think Telkom own 80% of the PABX market though. Maybe installation wise in SME market (although I doubt this too), but corporate (enterprise) South Africa chooses alternative technology partners such as Dimension Data, AST, Siemens etc and their market share in this space is nowhere near 80%. I believe that their focus will shift towards delivering corporate solutions and therefore leave the consumer market fading in its own shadow. I think Telkom will remain a very strong player in the market, but the consumer will not see any significant improvements as we cannot piggy-back on lines installed for the corporate market.
 
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