How to build better, cheaper broadband network for South Africa: Telkom CEO

envo

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No ****. This is what LLU is about Telkom, sharing the cost of running the network. Retards
 

Paul Hjul

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To lower the cost to communicate operators should share the cost to build networks. This is the view of Telkom CEO Sipho Maseko.

LOCAL LOOP UNBUNDLING

We have given you the memo and the workshop held by ICASA about two months ago was a good start: get your executive who was present to hold a proper briefing and then start calling (and funding) meetings with the other operators and an observer from ICASA
for Pete's sake it isn't difficult it just requires that little bit of courage and the realization that the alternative will include crippling fines and the death of your company (through the failure to innovate)
 

Paul Hjul

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somewhat ironic
I assume you've developed a great sense of irony from the field ...

It seethes irony and mild hypocrisy
undoubtedly he is making the case in a limited areas where Telkom is facing a wall: so things like Broadband Infraco and the universal service agency (clearly Telkom could do with a cash injection on that layer)

Neotel would be an awesome enterprise to take forward an open access LTE network (even transferring some spectrum with ICASA permission to Vodacom) but I doubt that is in Vodacom's plans.
 

The_Unbeliever

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Errrr... can we stop talking the talk, and instead walk the walk?

However :

This concept is not new. In 2012 Cell C CEO Alan Knott-Craig said that a great way to decrease the input costs faced by operators, which would result in lower prices, is to have one national wholesale operator.

He added that this network should not be government owned or controlled, and suggested a consortium which involved both government and the private sector.

All is good and well, but the danger lies in the fact that should this consortium start a collusion, then they can jack the prices up to give themselves fat salaries...
 

Paul Hjul

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a consortium is not the same thing as a racket

consortiums bring down prices rackets jack them up

the whole collusion problem only exists if colluders have mechanisms in place to prejudice third parties
 

The_Unbeliever

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the whole collusion problem only exists if colluders have mechanisms in place to prejudice third parties

Easy to say, but in this country where corruption is rife, anything goes.

I'm just miffed by corruption by now, and is very sceptical of any new consortiums who'll claim lower prices...
 

Paul Hjul

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Easy to say, but in this country where corruption is rife, anything goes.

I'm just miffed by corruption by now, and is very sceptical of any new consortiums who'll claim lower prices...
The point I am making is that you are equating a consortium with a racket and there is a subtle but important distinction. That distinction really is to be found in how the entity behaves to outsiders and gets away with behaving. The problem in the communications sector with the idea of a consortium is the fact that the operators already have locked out prospective competitors by virtue of the ECA - so they are already a cartel
 

DJ...

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I find this such disingenuous tripe. It's all good and well doing everything you possibly can (venturing into the illegal and unscrupulous realms of business) to dominate a market for decades...UNTIL said market requires investment in areas that will erode margins. Then at that point pretty much cry foul and call on assistance from the rest of the private market who you've effectively screwed over for years to carry the cost. It pisses me off no end...
 

friedpiggy

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Wait, so the company that charges its consumers twice for the same piece of copper is saying that its silly for operators to run multiple competing and similar networks?
 

MickeyD

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undoubtedly he is making the case in a limited areas where Telkom is facing a wall: so things like Broadband Infraco and the universal service agency (clearly Telkom could do with a cash injection on that layer)
I read the full article and this appears to focus on providing cheap(er) services only in underserviced areas...
 

krycor

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So after years of premium telecoms costs with profit rivaling the best of world industry at the detriment of local GDP growth they want to form a consortium to control wireless LLU and then have gov have a non-controlling % which is self regulated? Hah whose back pocket is getting filled for this disaster?

Sounds to me that the cell guys are worried about wireless LLU and prepared to be behind Telkom to prevent it
 
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