How would this be any different from Telkom's prior foray into the Cellular space with Vodacom though?
8ta's been a loss leader since day 1.
As for a name change, as suggested by one analyst - both of these companies have spent millions in ad campaigns to strengthen their current position. A name change now, would alienate a lot of clients and cause confusion (I think)
Merging makes sense wrt to keeping the fight to Vodacom and MTN, having all of their clientele on one balance sheet makes for a pretty sight.
But then why didn't Telkom benefit from the Vodacom deal a few years ago?
I like (as a consumer) having more operators to choose from, keeping them on their toes and having competition be a driving force.
As an investment (and I'm shooting from my very minimal knoweldge base) this could be a good thing.
But how it'll drive revenue in the black - provisionally, I don't know.
Also it leaves Telkom's senior management yet again with their paws in a basket, they've proved themseleves before to know nothing about.
And that's scary
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