Is government creating another Telkom?

[rpm]

http://mybroadband.co.za/news/Telecoms/929.html

 

[Syndyre]

Its all about control, government wants control of the sector for whatever reason, its probably seen as "strategic". The net effect though is what we've experienced with Telkom, high prices and substandard services. Private enterprise is clearly better suited to the job but the government is either too arrogant or too steeped in Marxist ideology to see this.

 

[Ricard]

The Govt CANNOT possibly create another telkom!

Show me just ONE govt department that has a Positive Cash-flow and can actually run themselves! Its a scape-goat for a money-pit

 

[BobbyMac]

The Govt CANNOT possibly create another telkom!

Show me just ONE govt department that has a Positive Cash-flow and can actually run themselves! Its a scape-goat for a money-pit

Finance. But your point stands

 

[Syndyre]

Its easy to have a positive cash flow when you can charge consumers extortionate rates for decades-old technology.

 

[cookiemonster]

If Infraco gets its way, we are going to be left once again with stagnant telecoms market... Who is going to invest in our country if the margins are so low?? Also, I can't name one government controlled industry that is really pushing the boundaries of innovation. People, I know we've been really patient, the market is slowly starting to open... WHY THEN DO WE WANT TO HAND IT BACK TO THE GOVERNMENT, AGAIN!!!

 

[BobbyMac]

If Infraco gets its way, we are going to be left once again with stagnant telecoms market... Who is going to invest in our country if the margins are so low?? Also, I can't name one government controlled industry that is really pushing the boundaries of innovation. People, I know we've been really patient, the market is slowly starting to open... WHY THEN DO WE WANT TO HAND IT BACK TO THE GOVERNMENT, AGAIN!!!

We don't. Sadly we have no choice - as long as the ANC runs the country they're obviously out to do as they please.

 

[cookiemonster]

We don't. Sadly we have no choice - as long as the ANC runs the country they're obviously out to do as they please.

I know, but I don't see why everyone doesn't see this as a bad idea? Everyone's just seeing cheap broadband... sorry cheap internet access!

 

[stoke]

Rather than building an inviting and competitive environment, government is creating another state funded company - possibly functioning outside of the current legislative framework - something South Africans are all too familiar with.

Concerning. Deeply concerning. Seems teklom no longer "looks like me" enough.

 

[bekdik]

Is government creating another Telkom?

In a nutshell, yes.

Why? If only we knew. We certainly have no idea as to what transpires in our controllers minds.

Deliberately didn't say leaders as we don't have any.

 

[Ricard]

Its easy to have a positive cash flow when you can charge consumers extortionate rates for decades-old technology.

Not even THEN can Infraco make a profit... SAA cant make a profit using brand-new planes...

I could pay R1 or R10000000000000 to infraco, they will still announce a loss and beg for a "Bail-out cash injection" (aka Land-Bank)

 

[BobbyMac]

I think there's inter departmental conflict. Ivy wants to control the Telecoms sector but Erwin wants to control infrastructure. So their little power struggle is at the expense of an open telecoms industry.

 

[AirWolf]

Skeptics may be concerned about prices remaining artificially high to satisfy investors, but competition always takes care of this problem, as long as the environment is truly open and liberalised.

Typo there - almost got the name of the forum sceptic --> Skeptik

But seriously, why is government implementing a failed model a second time; have they not learnt their lesson from Telkom?

We need an open market in the telecomms sector. Government control over this area will only lead to inefficiency, poor service and stagnation of technology and competition (which would reduces prices) will be stunted.

 

[Liansky]

I was actually chuckling before i opened up this page cause i knew what kind of responses there would be waiting for me.

Ok, now, what is well known is that the market does not work as perfectly as the telecoms industry would like for you to believe.

Example no. 1
The South African Banking Industry. No monopoly here. Just good old fashion indirect collusion that is not in the best interests of the consumer.
One reason why prices is coming down: Because of government intervention. Not because of the free competitive markets.

The market looks out for itself and you come a close 90th.

Most of the comments here are completely ignorant and although i cannot give my final verdict, all i can say is that no-one can tell me that this won't work just like i can't tell you that it will. Remember, the last people you should be listening to is the telecoms industry. If it's in their best interest to screw you over, they will.

 

[Tns]

in other words just more and less action, o and more gravy

 

[BobbyMac]

I was actually chuckling before i opened up this page cause i knew what kind of responses there would be waiting for me.

Ok, now, what is well known is that the market does not work as perfectly as the telecoms industry would like for you to believe.

Example no. 1
The South African Banking Industry. No monopoly here. Just good old fashion indirect collusion that is not in the best interests of the consumer.
One reason why prices is coming down: Because of government intervention. Not because of the free competitive markets.

The market looks out for itself and you come a close 90th.

Most of the comments here are completely ignorant and although i cannot give my final verdict, all i can say is that no-one can tell me that this won't work just like i can't tell you that it will. Remember, the last people you should be listening to is the telecoms industry. If it's in their best interest to screw you over, they will.

The difference is the banks were allowed to collude - they receive a fair amount of protection from the government. Furthermore the government is preventing any other banks to enter the fray easily - the four big banks in this country do hold a monopoly in terms of the services they may provide, and their underlying structure is governed by a jointly owned organisation (BankServ). Reserve bank policy makes it extremely difficult for smaller and private banks to compete with the major banks, which in turn protects the 4 banks from true competition.

Four companies in a saturated market will easily collude and dance the line dance to ensure that their profits are maximised in a state regulated artificial monopoly. All we have here is an oligopoly, and until the small banks are afforded the right to compete equally and fairly with the large banks, that is exactly where things will remain.

The problem we have in Telecoms is however different. The government owns shares in all the Telecoms Companies operating in the country (indirectly in Vodacom). It's not in the interest of the government to drive down costs in the Telecoms sector, as this will negatively impact both government coffers and private consortiums close to the government's pockets (Elephant consortium).

The government is hedging its bets to create its very own artificial monopoly - one that will work in what must appear to be an open market, but in reality where it pulls the strings. The government on the one hand speaks of lowering costs to the consumer, yet on the other sits on the board of all the big Telecoms companies. It's called window dressing, and it may even be as a direct result of the lessons learned from manipulating the banking sector.

 

[Mike_De_Lange]

Example no. 1
The South African Banking Industry. No monopoly here. Just good old fashion indirect collusion that is not in the best interests of the consumer.
One reason why prices is coming down: Because of government intervention. Not because of the free competitive markets.

Thats total bull****. They all just out to get your hard earned cash! indirect collusion ??? Is that the same reason I cannot go into an absa bank and deposit money into a nedbank account and vice versa! Thats total crap.

Its like saying only voda people can phone other voda people and only MTN can phone MTN. BUt its not like that! They reasonable. Yes you pay a little more to phone other service providers but AT LEAST ITS POSSIBLE.

Its not possible at all with our stupid banking sector (besides online transfers)! How is that supposed to benefit the public? If they were here to serve us they would allow cross bank deposits

*End Of Rant*

 

[AirWolf]

Maybe they will offer that service in future, but be prepared to pay extra. The banks don't give you anything for "free"