MTN to cut Telkom bills

Or title can read:

"Telkom South Africa expects to loose R9.1 billion in operational expenditure in the next 10 years due to pathetic fixed-line infrastructure services to just one of their clients, MTN"
 
You would think that Telkom would have bent over backwards to retain important revenue-spinning clients. But no, the only thing Telkom has bent over backwards for lately is to pay out undeserved fortunes to its inept, non-performing management.
 
Telkom is falling apart. The directors are getting as much cash out NOW because there is no future. Here and now. Don't plan ahead, that is the next persons problem.
 
How bad is this? I mean, normally one would make a joke when saying "It'd be cheaper to lay our own cables".

In any case, I'm glad they are not sitting around waiting for change. I hope they send some of the savings our way ^_^
 
Yes a big up to "what's-his-face-in-charge-of-telkom"...oh yes that ruben guy. Really doing a stirling job there bud, keep it up and we'll be rid of Telscum sooner than expected, nice one. Just hope we have some fixed line alternatives soon.

The car sales industry comes to mind here...announcement made: car sales down 20% year-on-year. Next announcement: buy now before general car price increase. hmm yes a price increase is just what's needed to boost sales a bit.
 
R9.1billion is a lot of money... R910million per year that Telkom's not gonna see...

LOVELY!!! :D:D:D:D









edit : thanks for Toxicbunny who worked the correct figure out...* :o
 
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Fixed Lines

But it means fixed lines to big companies not something as an alternative to the local loop or I'm wrong here.
So I'll still sit with a Telkom line.
 
So MTN->MTN calls should drop substantially in price? Right?
 
Skip said:
So MTN->MTN calls should drop substantially in price? Right?
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In theory, maybe. In practice, however, it is more likely that the shares of MTN will rise. MTN and Vodacom is not actually known for their cheap services.
 
Does anyone know of basic research done to calculate how much potential revenue Telkom is set to loose from all these developments? I mean, the rational for municipal networks is the savings on their Telkom bills. With Vodacom, MTN, Municipalities and some parts of government switching to Neotel/Infraco, how much business will Telkom retain? (MTN will save R9.1bn over 10 years, Vodacom will save more than R8-9bn (article), 4 metros will save over R2-3bn between them, SITA gave R1bn contract to Neotel, etc) - that is a lot of potential (and actual) revenue lost to Telkom.

IMHO, these investments will lead to substansive real (if not nominal) reductions in cost of data (R/Mb transfered), which will lead to significantly high growth rates in data send (Total revenue may/may not increase depending on the drop in price and increase in quantity). Very little, if any of the growth will go to Telkom, but with real price (per Mb) falling, Telkom's revenue is likely to face serious challenges - wonder how happy Telkom shareholders will be if their revenue growth is 5% p.a. (with inflation at 10%, real growth is thus -5%) while the rest of the market get 15%-25% p.a. growth in revenue? And that is before the impact of Seacom stripping away all their revenue from SAT3.
 
Oupoot said:
Does anyone know of basic research done to calculate how much potential revenue Telkom is set to loose from all these developments? I mean, the rational for municipal networks is the savings on their Telkom bills. With Vodacom, MTN, Municipalities and some parts of government switching to Neotel/Infraco, how much business will Telkom retain? (MTN will save R9.1bn over 10 years, Vodacom will save more than R8-9bn (article), 4 metros will save over R2-3bn between them, SITA gave R1bn contract to Neotel, etc) - that is a lot of potential (and actual) revenue lost to Telkom.

IMHO, these investments will lead to substansive real (if not nominal) reductions in cost of data (R/Mb transfered), which will lead to significantly high growth rates in data send (Total revenue may/may not increase depending on the drop in price and increase in quantity). Very little, if any of the growth will go to Telkom, but with real price (per Mb) falling, Telkom's revenue is likely to face serious challenges - wonder how happy Telkom shareholders will be if their revenue growth is 5% p.a. (with inflation at 10%, real growth is thus -5%) while the rest of the market get 15%-25% p.a. growth in revenue? And that is before the impact of Seacom stripping away all their revenue from SAT3.
Click to expand...

Excellent point you've made there, and will be most interesting to watch.

Telkom will try to offset their losses by raising their prices - and scare off the last few customers...
 
Oupoot said:
Does anyone know of basic research done to calculate how much potential revenue Telkom is set to loose from all these developments? I mean, the rational for municipal networks is the savings on their Telkom bills. With Vodacom, MTN, Municipalities and some parts of government switching to Neotel/Infraco, how much business will Telkom retain? (MTN will save R9.1bn over 10 years, Vodacom will save more than R8-9bn (article), 4 metros will save over R2-3bn between them, SITA gave R1bn contract to Neotel, etc) - that is a lot of potential (and actual) revenue lost to Telkom.

IMHO, these investments will lead to substansive real (if not nominal) reductions in cost of data (R/Mb transfered), which will lead to significantly high growth rates in data send (Total revenue may/may not increase depending on the drop in price and increase in quantity). Very little, if any of the growth will go to Telkom, but with real price (per Mb) falling, Telkom's revenue is likely to face serious challenges - wonder how happy Telkom shareholders will be if their revenue growth is 5% p.a. (with inflation at 10%, real growth is thus -5%) while the rest of the market get 15%-25% p.a. growth in revenue? And that is before the impact of Seacom stripping away all their revenue from SAT3.
Click to expand...
All very possible & likely.

There is a reason why SBC/Telkodemonopolies negotiated with the guavamentalists [aka shareholders] to prevent the cellular networks from being able to self provision their own network infrastructure, and why this restriction was included in the Telecommunications Act of 1996.

Telkodemonopolies is ripe for a hostile takeover, hopefully the Local Loop infrastructure will be unbundled to some extent before the new management takes over from Reuben September.
 
All I can say is DIE TELSCUM DIE!

I will never rejoice the downfall of any SA company but concerning TELKOM I will rejoice and be drunk. WHY, for all the revenue they stole of me for what? I could have used that money better and that again would have invested towards positive growth in SA.

Between TELKOM, ESKOM, DSTV, MTN, VODACOM..... They are the culprits and killers of our economy these companies are all sponsored by this Government enriching themselves as they are the defacto private shareholders in the above companies.
 
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