Has Telkom passed its crossroads?

[rpm]

Has Telkom passed its crossroads?

For many it may be a burning question: Has Telkom passed its crossroads and which direction has it chosen to take?

 

[rpm]

I think Telkom should have a tremendous broadband drive - try to convert as many of their 4.5 million fixed lines to ADSL. Their fixed line infrastructure is one of their biggest assets, but I feel they are not making the most of it. Vodacom, MTN, iBurst and Neotel are stealing market share from Telkom all the time...should not really happen.

Obviously significant price cuts will have to form part of it

 

[Archie1]

Does that wink hint at something?

 

[jasweb]

Well, I have not used my Telkom line in the past 6 years.... significant price savings will be required....

1) Why would I want a home phone?
2) Google Talk (and Fring) is my new SMS replacement...
3) My 3G broadband follows me wherever I go
4) See my SIG for the rest

 

[demon angel]

Why isnt the low cap issue addressed properly?
They are busy killing themselves.
Wait, maybe thats a good thing....

 

[Nerhzelok]

*cough*....zzZzz...*snores*.... *cou... UNCAPPED!*cough*

 

[Lightscribe]

So few tentacles...?
http://mybroadband.co.za/news/Telecoms/8999.html

The aim of Telkom’s geographic expansion strategy is to establish itself as a regional voice and data player through the provisioning of a range of hosting services, managed solutions, mobile voice and wireless broadband services. To date, Telkom has invested in Multi-Links, Africa Online and M-Web Africa. It has also signed a memorandum of understanding with the USA’s AT&T.

Oh yeah...
http://www.telkom.co.za/pls/portal/.../docs/Manual i.t.o. PAIA (Public Body)_IT.pdf

2.1 Structure and functions - [Section 14(1)(a)]
2.1.1 Telkom is a public company incorporated in terms of the company laws of the Republic of South Africa under registration number 1991/005476/06. The shares of Telkom are held as to 39.8 % by the government of South Africa (through the Minister of Communications).
2.1.2
Telkom has the following subsidiaries –
Page 4 of 28
(a)
Swiftnet (Pty) Ltd (100%);
(b)
TDS Directory Operations (Pty) Ltd (64.9%);
(c)
Africa Online Limited (100%);
(d)
Multi-Links Telecommunications Limited (100%); and
(f) M Web Africa Limited (100%) and M Web Namibia (Pty) Limited (75%).

 

[Kuga]

Crash and burn! That's their plans.. /wakes up from dream.

 

[Tegnik]

Everyone is hinting about price decreases. Gary is one of them, and he knows his stuff. I pray they know their stuff.

 

[Nerhzelok]

Everyone is hinting about price decreases. Gary is one of them, and he knows his stuff. I pray they know their stuff.

I just want uncapped man. Thats.. all that I want. =(

 

[krycor]

I think telkom has the best ability to provide newer services the others cannot for some time but.. it comes down to cost of these services.

 

[ponder]

Everyone is hinting about price decreases. Gary is one of them, and he knows his stuff.

He's just a blind optimist.

 

[Sting]

I think he might know something...

 

[MidnightWizard]

Moles Moggies Magic and Morpheus

It is not a "rabbit" hole but a mountain on top of which sits Magic the Moggie who is a friend of Morpheus ( and a good mol-vanger )

MW

 

[ads]

Can Telkom still defend its voice component as a profit-generating service? Is there growth in voice? CEO Reuben September believes so.

It's very difficult to see how this is possible. There's really only one way which Telkom's market share of fixed-line voice can go, and one way which prices can go (over time), so it's non-sensical.

However, with regard to voice revenue, Telkom’s traffic revenue decreased by 3,9%.

QED

Telkom’s Africa strategy has not been something to shout about.

I would have thought it was something their shareholders should be shouting at them about.

Now that Telkom has the opportunity to enter the mobile market in South Africa, September explained that the company was in the process of conducting comprehensive mobile market research to establish exactly how it can maximise the opportunity at minimal operational and build cost.

From a shareholder perspective, it's difficult to see how a strategy of trying to build from scratch a copycat fourth mobile operator in a saturated market, where the third mobile operator is facing significant financial challenges, makes sense. Of course, doing it at a time when you've just sold your mobile arm to the world's second largest mobile operator, and there's a global recession, smacks of lunacy.

It has also signed a memorandum of understanding with the USA’s AT&T.

Not to put too fine a point on it, but pairing one fatcat former incumbent with another fatcat former incumbent is music to the ears of competitors in both countries.

The funding received from the DoC totals R950-million over the 2009 and 2010 financial years. Telkom has spent R118-million during the year ended 31 March 2009. The DoC funding does not cover certain increases in the national backbone and transmission networks, management operating systems and network synchronisation requirements.

... not forgetting that Telkom is paying FIFA $$$m (anyone know the figure?) as a sponsor for the privilege of joining this little party. Very few FIFA World Cup sponsors ever actually make a net profit on the deal - it's more for the look of it.

Revenue will be generated directly from FIFA, the media and broadcasters.

...except from those that need real bandwidth, and will be using SEACOM.