Mixed signals

Hodge says his views on Infraco are contradictory. On the one hand, he says, economic theory teaches that the private sector may run companies more efficiently. On the other, it's also more efficient at abusing market power. So, he can understand Government's fears around Neotel; if placing the backbone infrastructure in Neotel's hands was creating a duopoly, this wouldn't change the landscape (Neotel itself has articulated no desire to enter into a price war).
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More efficient than who.
Surely NOBODY can be more efficient at abusing market power than Telscum.
:confused: :confused:
 
I personaly dont have a problem with government owning shares in Telkom or any other companies and getting good returns that they can invest in social upliftment projects, they must just stay out of the regulatory arena or at least let an independent regulator (ICASA???) make the rules. (Yeah, I know..)
The governemnt are essentialy using our money and if they can invest it to good purpose and return so much the better.
However, government must level they playing field for other companies and the moment their investments (Telkom) stop paying dividends they need to invest afresh.
Shope-Mafoles views about rolling out infrastructure to schools and hospitals sounds great but why isnt it being done? The technology is there and its inexpensive, specialy next to the savings that would be provided for those who take up the offer. These promised actions are what one would expect of a benevolent and socialy conscious government but despite having had so much time to do somthing its all just hot air and empty rhetoric.
If there had been any (at all) efforts in these directions the public would have a lot more time and sympathy for govenrmnt.
 
Matsepe-Casaburri should have an interim report from her local-loop unbundling committee any day now.
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Read: hopefully before she will decompose of age.
 
It is unfortunate that goverment are only willing to look at falling revenues from Telkom (with a free market) which they see as hurting their investment and returns. The fact is that with cheaper telecomunication costs businesses will thrive and grow and so will tax revenue, jobs and opportunities.
 
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Tommygun said:
It is unfortunate that goverment are only willing to look at falling revenues from Telkom (with a free market) which they see as hurting their investment and returns. The fact is that with cheaper telecomunication costs businesses will thrive and grow and so will tax revenue, jobs and opportunities.
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Very unfortunate. Maybe the biggest unfortunate is that the rest of the Telkom shareholders will lose out on their artificially large dividends and share value and one suspects that the majority of these are close friends of the government, which might provide some sort of reason for the government attitude.
 
Rikus Potgieter said:
Hodge says his views on Infraco are contradictory. On the one hand, he says, economic theory teaches that the private sector may run companies more efficiently. On the other, it's also more efficient at abusing market power. So, he can understand Government's fears around Neotel; if placing the backbone infrastructure in Neotel's hands was creating a duopoly, this wouldn't change the landscape (Neotel itself has articulated no desire to enter into a price war).
Click to expand...
More efficient than who.
Surely NOBODY can be more efficient at abusing market power than Telscum.
:confused: :confused:
Click to expand...
Can't argue with you there. I'm sure many would agree, that it's because of gov watching Telkom's back that they carry on the way that they do. What company in its right mind would carry on in such a greedy manner, pissing off all its customers to no end with high prices and general incompetence!!

There are many solutions to the situation but gov lacks the will to act expediently.
 
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