Huge fine haunts Telkom

Telkom stands to be fined 10 percent of its R50-billion revenue.
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Add the fact DSL didn't come down this year, and phone line rentals went up, who do you think is paying for this fine? And where does that money go once fined anyway?
 
And we the consumers will end up paying it.

Prepare yourself for the reaming you are about to receive
 
eltherza said:
Add the fact DSL didn't come down this year, and phone line rentals went up, who do you think is paying for this fine? And where does that money go once fined anyway?
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This would be paid out of money already earned by Telkom. If they raised their prices in response to this, they would end up losing more revenue. They are at break point already, people are just looking for an excuse to get rid of them. The money goes to the government which is fine by me. Let them build some more houses or provide services for some more people. Or give me a tax break. Thanks Telkom! :D
 
Garyvdh said:
only if you choose to. You don't have to use them. ;)
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No - but the company that makes the loaf of bread you bought today might. And in order for them to recoup costs, they raise their prices.

Unfortunately, telecomms costs are not easy to avoid - be they your direct costs, or input costs in the chain of goods and services you use.
 
eltherza said:
Are you sure they haven't already?
New price increases
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Telkom has raised prices consistently in line with the CPI for more than ten years. This increase is in fact, less than previous increases.

The same argument applies to passed on costs. There are hundreds of factors which affect price increases across the board. I highly doubt that Telkom being fined R5 billion is going to raise the cost of my bread any more than the usual cost increases that I can expect.

I, for one, and glad if they get fined. They have gotten away with too much for too long. Sounds to me like you guys would rather that they be left alone to get away with whatever they want? Like unjustified price gouging? You defend them on the one hand so they can steal from your back pocket while you are looking the other way?
 
Garyvdh said:
I, for one, and glad if they get fined. They have gotten away with too much for too long. Sounds to me like you guys would rather that they be left alone to get away with whatever they want? Like unjustified price gouging? You defend them on the one hand so they can steal from your back pocket while you are looking the other way?
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I never once said that (others may have). But it is naive to think that adding anything to input costs across the majority of businesses in SA will not affect inflation.
 
Moederloos said:
I never once said that (others may have). But it is naive to think that adding anything to input costs across the majority of businesses in SA will not affect inflation.
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That's fine by me. I would pay good money to see Telkom humiliated.
 
Moederloos said:
I never once said that (others may have). But it is naive to think that adding anything to input costs across the majority of businesses in SA will not affect inflation.
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They won't necessarily be able to increase prices. Hopefully if the Competition Commission can establish jurisdiction they can regulate Telkom better than ICASA's able to. They're also starting to face a more competitive environment now.
 
Syndyre said:
They won't necessarily be able to increase prices. Hopefully if the Competition Commission can establish jurisdiction they can regulate Telkom better than ICASA's able to. They're also starting to face a more competitive environment now.
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Yes, if the CC wins and enforces the fine, I bet Telkom will think twice about stepping out of line again or passing the costs off to customers. They would be risking another fine.
 
Having them pay the fine is just the cherry. What it really would mean is that they have to alter their practices to avoid another fine. And in them altering their way of doing bussiness would ultimimately make DSL cheaper and competition more fair.
 
so this explains the price increases and other soon to be implemented increases
 
Tns said:
so this explains the price increases and other soon to be implemented increases
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No, Telkom's trend of raising prices in line with the CPI every year explains the price increase. That and nothing else.
 
i just wish the ammendment to the ect act would hurry up and get here now. then telkom can no longer forum shop as it states clearly in the ammendment that the CC is in charge of all competition related matters.

once that happens, i think teklom are gonna get the reaming for a change and i seriously dont think they gonna like it too much.
 
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