Government to sell SNO stake

[MaD]

http://www.moneyweb.co.za/news/tech_stocks/457885.htm

"Government will effectively reduce its exposure to telecommunications, with the sale by transport parastatal Transnet of its Transtel subsidiary, which houses a stake in the soon-to-be licensed Telkom competitor, the second network operator (SNO). "

Gov should sell off their stake in Telkom as well, and then give ICASA more power.

 

[eye_suc]

Should yes, but only in my wildest fantasies...

 

[bekdik]

Hmmm. Maybe Telkom will purchase the shares? Now THAT makes an interesting picture. NOT.

 

[The_Right_Honourable_Brit]

Well this is good news...but they need to have NO stake in the telecommunications at all.

 

[SlimJim]

gov has no choice but to sell shares in the sno. you can't possibly have shares in competing companies and not piss off the remaining share holders, especially when the stakes are as large as what the gov posesses.
but there's no reason why gov should'nt have shares in telkom, clearly its a hugh source of revenue for them and one hopes its put to good use

 

[stoke]

...and one hopes its put to good use

How do you spell naieve ?
That's the base of the problem - cos it's such a good cashcow - governmint will justifyably make sure that it keeps bringing in the beeg bucks, and screwing us poor consumers.

 

[SlimJim]

well transtel needed capital from somewhere to lay the fibre optic cables, i'm pretty sure the R800 billion odd did'nt come from telkom.
state funded?
as far as i'm concerned thats sums up 'good use' in my books

 

[bb_matt]

Well, you know what they say, There's NO business like SNO business (Ivy has been singing that one for years !)

 

[Karnaugh]

but there's no reason why gov should'nt have shares in telkom, clearly its a hugh source of revenue for them and one hopes its put to good use

Of course there bloody well is. It means the government has a very good reason to keep Telkom as a strong monopoly.

 

[bb_matt]

clearly its a hugh source of revenue for them

What's hugh got to do with it, that's what I'm wondering ?

 

[Karnaugh]

well transtel needed capital from somewhere to lay the fibre optic cables, i'm pretty sure the R800 billion odd did'nt come from telkom.
state funded?
as far as i'm concerned thats sums up 'good use' in my books

Erm. Please read up on this before making speculations.

Transtel already had alot of fibre for starters, and about half the money came from Eskom. The rest from the other shareholders.

 

[SlimJim]

i stand corrected on a few counts here:
#1 gov clearly had no part to play in transtel's f/o cable infrastructure
#2 obviously gov wants to screw the sa public outta every penny they got (makes sense)
#3 and hughe really does have an 'e'

 

[MaD]

and screwing us poor consumers.

What Government doesnt give a **** about though is the poorer people - the previously disadvantaged (now currently disadvantaged thanks to them) who have to fork out over R3/min for prepaid calls.

A friend of mine reckons Gov and Telkom are punishing the users of telecoms services as they are perceived to be predominantly white so now they are being punished in a way for their naughty behaviour in the past. But then again, Gov has proven to be pretty useless in most aspects - housing, HIV/AIDS, etc etc etc etc etc

 

[Karnaugh]

A friend of mine reckons Gov and Telkom are punishing the users of telecoms services as they are perceived to be predominantly white so now they are being punished in a way for their naughty behaviour in the past.

Oh spare me - thats a complete load.

 

[DragonLogos]

Yip.... Telkom are a equity punishment partner, they make everyone's life miserable.

I think I read somewhere that they were described as puppets for their Colonial masters