Telkom: Time to Cut and Run

Charlie.

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"We've got mountains, we've got sea..."
It is oft said that the ability to entertain an idea without actually believing it is a sign of intelligence, so let us speculate a little... it's harmless and provides a quick intermission from the day's tribulations...

I sometimes wonder about the intelligence of the fat cats at the top of the Telkom tower. Sometimes, I think that they're actually quite intelligent - like many criminal minds. Assuming they do posses a total of two braincells, shared amongst them, how good are their precognitive abilities? Have they foreseen their downfall?

One might see the recent change of leadership and the fact that news of a possible deal with MTN has reached public knowledge as an indication that they might have.

What if they know that their reign is coming to an end and they're preparing to "cut and run", taking their profits and leaving Telkom to rot under the harsh, African sun?

If this hasn't happened, yet, might it happen in the near future?

In the last couple of weeks, two of three new undersea cable projects have indicated that they have secured the necessary funds to proceed. Each one dwarfs the SAT3! Neotel have announced their public service, to launch in 2008 and to share SAT3. We remain doubtful about that, but neither Neotel nor the cables play in Telkom's favour. Could these, and other developments, prompt Telkom's executives to cut and run?

If I was an executive in possession of a monopoly, I'd (probably) be out in the bay on my keel-canting Farr-design, thinking about my retirement. I'd be making some plans to ensure that a the meteoric descent of the monopoly wouldn't take me with it.

Would a "cut and run" manoeuvre be a good thing for us, even if it did happen?
 
IMHO Telkom is going nowhere. So they lost their Billions with Vodacom. They have plenty of spare. And NeoooooTel has made it clear that they are not going to enter into a price war. So. Just molested from both sides for us
 
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