Ivy loses yet again

[Debbie]

Yup, no schools have been connected despite a requirement by law to do so enacted 12 years ago.

At one stage telkom was blaming the department of education for not providing them with a list of government schools entitled to the education e-rate.

 

[bekdik]

I think that the ANC should take the minister to court.

 

[kingmonty]

I think that the ANC should take the minister to court.

I really don't get why everyone assumes the minister is acting alone and independent of the ANC.

The ANC dictates policy to their ministers. That's how this government is run.

 

[LazyLion]

I really don't get why everyone assumes the minister is acting alone and independent of the ANC.

The ANC dictates policy to their ministers. That's how this government is run.

that would seem logical IF we didn't know about her vested interests in Telkom and its profits.

 

[Debbie]

I really don't get why everyone assumes the minister is acting alone and independent of the ANC.

The ANC dictates policy to their ministers. That's how this government is run.

I would disagree with you there, I don't think the ANC runs the government through policy, I think a few individuals in the ANC dictate their orders and call it 'policy'.

 

[The_Unbeliever]

Anybody wanna buy some fresh, hot popcorn and comfy chairs at R45.00 each?

And that's cutting my own throat!

 

[UglyKidJoe]

Another aspect is the license fees charged: government through its proxy ICASA charged millions of rand for Telkom and Neotel to get the licenses. So, basically, Altech are getting a license for which they are paying multitudes less (it's simply a VANS license being converted).

Very well spoken mate, thanks for a good post.

I agree with what you said, though I'm note sure Telkom really paid anything for their licence. I stand for correction on this.

Even if they did pay, it would have been pocket change for them. Lest we forget, they we're making millions of Rands profit per day(while retrenching staff etc) under government protection. So I can't say I will feel sorry for them in the slightest when they finally collapse in a heap!

...and you're absolutely right about Neotel feeling like they've lost out. They have. They paid premium to be allowed into the exclusive club, and now it's open season! Fortunately for them they have the financial muscle to weather it, but I'm sure they're not happy campers in Africa at the mo.

Woza competition

 

[tjunyat]

To throw something extra in the pot, fairly creditable rumours abound, that the appeals against Altech have actually been written by Telkom lawyers.

 

[ic]

And another epic fail for which the taxpayer have to pay...

At least, if telecomms prices drop then we'd call it even...

Nope, more like an acceptable loss to be written off in the pages of history.

The government is sitting in a bit of a bind in this regard.

On the one hand, they licensed Telkom, MTN, Vodacom, Cell C and Neotel (at immense cost) to be allowed to self provide telecoms. For the cellular companies they put in provisions that prevented them from self providing along fixed lines, so they were still forced to use Telkom to provide backhaul infrastructure.

Now, the conversion of the VANS licenses to a license that allows them to self provide effectively removes the government intervention from the process. Government has always in its license regulations enforced provisions that gives it a significant stake in these companies (remember, these big telecoms companies like Telkom and Neotel required laws to be passed to allow them to be formed, and government used this process to acquire a stake in these companies by issuing directives in these particular laws). Another aspect is the license fees charged: government through its proxy ICASA charged millions of rand for Telkom and Neotel to get the licenses. So, basically, Altech are getting a license for which they are paying multitudes less (it's simply a VANS license being converted).

Therefore, government is sitting with their finger in the proverbial:

1. They can't force a directive in a law (enforced as an Act) that automatically gives them a stake in Altech
2. Neotel recently forked out several million rand for a license that Altech are getting by virtue of being a VANS - so Neotel - rightfully so - will likely be somewhat bitter with the government
3. The DoC have previously stated that government intervention is required to lower telecoms costs - obviously, as long as they stifled competition they didn't need to disprove such ludicrous claims. Enter competition, and suddenly COSATU and all the other pro state organisations will realise this was all rubbish
4. And lastly, without a significant stake in the telecoms provisioning company, the government cannot enforce its own tight control in the sector. Remember, the sector includes broadcasting (SABC), so it may possibly feel threatened by telecoms liberisation as its own mouthpiece will not necessarily remain the definitive information source for the masses in a liberalised sector.

So, in essence, the government has a lot to lose.

All good points IMO, but I really don't care if certain self-interested gravy train veterans suffer - eventually the tide starts to turn and in this case the gravy train veterans are getting a taste of the bad karma they have created as a result of meddling in SA's Telecoms sector to line their own back pockets.

I really don't get why everyone assumes the minister is acting alone and independent of the ANC.

The ANC dictates policy to their ministers. That's how this government is run.

I take the view that once Poison Ivy is removed [preferably in handcuffs] from the DoC and SA's Telecoms sector, the corruption that has kept her in power will be unveiled|unravelled, and Stalin-Mafole would surely be the next one behind bars, following her would be Paris Mashile and Ivy's other plants within !CASA. As you can see, it's easier to just call for Poison Ivy's head than to have to tap that out in every post.