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The market is bound to develop into an oligopoly as time goes by just like the cellphone market.But a duopoly, notably one where the incumbent is so strong and the newcomer is entering the game so late, has never resulted in real competition, particularly when the regulator is weak.
A recent report by telecoms consultant Paul Cole reckons the managed liberalisation policy has resulted in consumers paying 440 times more than they should for voice and data services.
why would government listen and unbundle the local loop - if they do, they would not be able to call meetings about the meetings, and get their doughnut dose of the day!.
How many times must we see what's happening before we start to face facts and realise that government has not "missed out". If only it was public knowledge how many people (names included) have benefitted solely from Telkom's monopoly and high prices being protected by government over the years. I'm beginning to seriously doubt that "managed liberalism" was just some random idea that came into being years ago - somebody saw an opportunity back then to directly profit from the situation we now find ourselves in and just enough people have been included to keep the status quo over the years. America had it's Watergate and Enron scandles, I won't be surprised if one day there's a SA movie about the Telkom Scandle(tm) making headlines around the worldGovernment has the opportunity to create a truly competitive, world- class industry. It should take care not to miss out — again.