Neotel's challenge to Telkom

[SuperAntMD]

“I have told my staff that I don't want to see any correspondence leaving our offices with an asterisk that indicates that ‘conditions apply'.”

Nice!

 

[feo]

It's still all talk...from the endless amount of crap we've swallowed in the past you guys would be fools to fall for all this lip service now...but hey it does sound kinda nice

 

[Paulr]

The words are very nice, now let's keep our fingers crossed that the actions follow that!

 

[kilo39]

“The leg from SA to London is priced at a certain level and that is an agreement Telkom has because of its exclusivity rights. However, if the London to SA circuit is priced at ‘x', then Telkom charges five times that for the half circuit from SA to London,” he explains.

Last year VSNL, Neotel's principle foreign investor, completed the acquisition of Teleglobe International, resulting in it owning 33% of the SAT-3 cable, a shareholding that is slightly higher than Telkom's.

Pandey says once Telkom's exclusivity ends over the SAT-3 landing rights towards the end of April next year, Neotel will negotiate to have at least equal access to the cable.

Fighting words - goodly (hopefully) telkom will yet get to regret its total disdain for its [broadband] customers. Mmm - wonder why he focuses on voice - ?

 

[Highflyer_GP]

Simple - voice prices need to come down before data can. Think about it there's no point having affordable data prices while it's still expensive to VoIP into the country. Data should follow shortly after voice.

What worries me is that they now have a higher share in the cable than Telkom, yet they still have to negotiate to have at least equal access to the cable. If anything, Telkom should be negotiating for equal access.

 

[kilo39]

Simple - voice prices need to come down before data can. Think about it there's no point having affordable data prices while it's still expensive to VoIP into the country. Data should follow shortly after voice.

What worries me is that they now have a higher share in the cable than Telkom, yet they still have to negotiate to have at least equal access to the cable. If anything, Telkom should be negotiating for equal access.

You mean the landing station issue? Would have thought share in cable equals access (but can't land it?)

and VoIP is data - as opposed to voice circuits?

Or - voice costs should equal VoIP costs?

 

[Highflyer_GP]

If I recall I think their monopoly on the landing stations expires, that's what the main issue currently is. Therefore VSNL being a higher stakeholder than Telkom shouldn't need to negotiate for equal access once the sole rights to the landing stations are relinquished, it's Telkom who should be negotiating.

 

[moosag]

Ever since Neotel launched it has been very interesting. I do agree that there is way too much lip service and that actions speak better then words.
Unfortunately Neo got till next year june i would say in my books to prove something.

Anyways on a side note. Inida as a country are the worlds service center just like China is the worlds manufacturing and labour center. No other country's economy can compete with the Likes of Inida and China wrt to servies and goods. Its a fact. America has moved alot of its Software Development, call centers, etc etc etc over to India for a whole range of reasons but mainly finacial benefits.

VSNL basically host the Infrastructure to allow India as a country to dominate the world when it comes to the Service Industry... Which in my books is very interesting...

I do alot of business in India. There are things that I outsource to India which get done faster, better quality and most importantly 1/10 the price of what anyone here in SA can offer. Even taking into account imports and duty costs.

Now you take that recipe for business acumen and put them in charge of your SNO. I honestly think they not only going to change the market, but they also going to teach the GVT, Telkom and every other company in this country how to do Business.

If you look at the facts.... Neo aka TATA cant even be compared to Telkom. They just in a completely different league. Telkom cant even come close to them. India's population is 1/6 of the world +- 1Billion ppl. Here in SA we 55+- million.
If you take TATA's control, expertise and business in India alone it makes Telkom look like fools.

Imagine Telkom staff and management having to service a country with 1 Billion people???
When you have a child apply for a birth certificate and a Telkom Line... The kid will be lucky to get his line on his 18th birthday.

I think we in for a good show over the next 2 years thanks to Ajay and TATA.

 

[ic]

WARNING: Old-ish thread revival...

Bwana
Some stats on SAT-3 and Neotel

Last year VSNL, Neotel's principle foreign investor, completed the acquisition of Teleglobe International, resulting in it owning 33% of the SAT-3 cable, a shareholding that is slightly higher than Telkom's.

Pandey says once Telkom's exclusivity ends over the SAT-3 landing rights towards the end of April next year, Neotel will negotiate to have at least equal access to the cable.

http://www.itweb.co.za/sections/telecoms/2006/0609061036.asp?A=AFN&S=All Africa News&O=FPIN

How about this news report, eish

The Eastern Africa Submarine System (EASSy) telecommunications cable running down the west side of Africa was "at full capacity" and the planned eastern cable linking East African and Southern African states was key to providing affordable broadband to ordinary South Africans, South African Communications Minister Ivy Matsepe-Casaburri said on Tuesday.

http://www.mg.co.za/articlePage.aspx?articleid=288580&area=/breaking_news/breaking_news__business/

and we wonder why there is confusion.

Very interesting that Tata is now the single largest shareholder in the SAT-3 Bandwidth Illuminati consortium, and very interesting that Telkodemonopolies did not see this acquisition coming and has so far failed to buy out another SAT-3 shareholder to regain voting power [based on the assumption that not many of the other shareholders would side with Telkodemonopolies over Tata]...

 

[dominic]

my understanding is, with regard to SAT3, that it is the shareholders agreement which stands in the way of VSNL landing bandwidth in SA at the moment - there are exclusivity provisions to the effect that the major shareholder (investor) from each participating country is the only one who can land bandwidth in their country - after april the shareholder's agreement falls to be renewed and VSNL will have to negotiate an amendment to the exclusivity clauses. there is no problem from the SA govt side with licensing neotel to land it.

it should also be borne in mind that telkom is the SAT3 network administrator, probably one of the reasons it has been able to use its pricing in respect of SA....

take an estimate that SAT3 is running at 40Gbps and there is still 80Gbps accessible through an upgrade...neotel should be able to at least match what telkom is currently drawing (if it wants to)

re the financials and relative sizes of VSNL and telkom...how telling is it that telkom, per wikipedia, had revenues almost 10 times greater than VSNL for 2004? (...not really knowing what they mean by "revenue")

 

[kilo39]

Alcatel today announced that it has signed a multi-million US dollar turnkey contract with the SAT-3/WASC/SAFE* consortium to upgrade its submarine cable network. With completion scheduled in the last quarter 2006, the project will generate a quantum leap in available capacity on the system and will enhance international connectivity between West & Southern Africa, Europe and Asia. The upgraded network will also continue to operate as a back-up path for part of the Sea-Me-We 3 network between Europe and Asia, thus providing a highly reliable, alternative information highway for non-stop communications across half of the globe.
Alcatel Upgrades Atlantic Submarine Cable Network 09.01.05

Germane?

 

[-toady-]

*Very interesting that Tata is now the single largest shareholder in the SAT-3 Bandwidth Illuminati consortium,*

many a true word there IC.... u don't miss much heh....


toady

 

[Nokkie]

i can also so i'll do it but then when... am i going to?

 

[ic]

*Very interesting that Tata is now the single largest shareholder in the SAT-3 Bandwidth Illuminati consortium,*

many a true word there IC.... u don't miss much heh....


toady

LOL, there are things that fly under my radar, and I missed this thread in September - but that was more due to the after-effects of criminals that chewed up my time .

i can also so i'll do it but then when... am i going to?

say what?