Conspiracy Theory

M

Mean_Monster

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Just a thought.

Telkom are making Billions in profits yet they do not cut prices etc (often enough). This puts them in a strong position when the competition does enter the market.

Everyone is hoping that the SNO is (manna from heaven) and that they will give ADSL access away or at least come close to giving it away.

Now what if Telkom decides to only make a Billion Rand profit for one year to weed out competition? The SNO has sort of said that they are going to be focusing more on DATA lines. That is exactly where Telkom are making the most on as these services are probably 80% overpriced. So they can easily drop prices so low that it becomes totally one sided. Heck they could almost sell it at cost and still make money on the VOICE side of the business.

How will the SNO be able to compete with that?

What you guys think?
 
but wont they put the SNO out of business even before they get properly of the ground? The point is that they can undercut anyone coming into the market. Once they put the SNO out of business we are stuck with Telkom probably forever as no one will want to get involved here again.
 
Now you see - governmint cannot and willnot allow teklom to drop their prices for exactlee that reason.
Govmint has promised sno certain things for a certain timeperiod.
So - in short - we're skrewed.
 
That's where the toothless Competition Commission would have to step in & do who knows what...would have to find their ordinary dentures first though...
 
Well I am hoping Telkom will play it stupid and keep the prices escalated, that said from what I understand the majority of the infrastructure for the second SNO is already in place thanks to transtel. So I don't think they will be at that much of a disadvantage.

Secondly, with all the resentment that telscum has managed to accrue with all it's sharp business acumen, I personally would change providers out of principal. And I think allot of people feel the same way. :D
 
Seriously, if they undercut the SNO and offer good offerings finally, then so be it. We arnt here to praise and wait for a solution, even if Telkom start to provide the service levels and pricing they should have long ago, its good for us.

Remember, the SNO will still come here to make money, not to save us and break equal.
 
guys face it we are screwed and will always be. ADSL coming down

192 will 279.00 384 will be around 379 so its about 50-80 rand drop not enough
 
I've got a feeling that the SNO has more than enough funds to have to worry about a telskum price war. Also have a feeling they'll be laying their own SAT cable sometime in the near future.
 
Principal - a start I suppose...

FireFLi said:
Secondly, with all the resentment that telscum has managed to accrue with all it's sharp business acumen, I personally would change providers out of principal. And I think allot of people feel the same way. :D
Click to expand...

Amen to that!
However, one can't help but expect to be a little dissapointed by the SNO when they actually start trading. As we all know, our marvellous democratic government has a large stake in Telscum, and all SNO bidders have had screening processes and endless negotiations regarding entering the SA Telecomms market - I'm just about sure that no undercutting will take place, additionally the SNO will probably use Telcrap's infrastructure for a year or two before their own is in place. (Might be a very liberal figure that) Also, negotiations over share percentage for government and probably Telscum itself will be a governing factor for any party posing competition to the monopoly.

Even if we all decide to boycott Telcrap by moving over to the SNO out of principal to invoke a price-war, I reckon the real competition will only start once a 3rd Network Operator enters the market - I'm 28 years old going on 29, I fear I won't live to see that day though...
 
I'm starting to come to the realization that we are totally screwed in this country.

Just when u think that Telkom is scratching the bottom of the barrel with their adsl 192, they discovery a new way to sink to a low by their proposed enforcing a local cap and maybe even paying per Mb on ADSL. Why even offer a Broadband service if you going constantly erode it away until it becomes only marginally better than dialup?

Corporations have a “Screw the consumer” mentality in this country, look at ANY sector, Motoring / Banking / Food / …. etc Everywhere we are being ripped a new ahole. There is simply no way that the SNO is going to “save” us. They are simply going to price themselves at a point where they are just competitive and screw us like everyone else.

I love this country, but let’s face it, if you need to have proper broadband, the answer is not to switch providers, but to switch continents.
 
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