Phone rival’s survival in hands of Telkom

[mystic]

http://www.businessday.co.za/articles/topstories.aspx?ID=BD4A89469

“I am confident that we will be operating soon ,” Socikwa says.

The second operator is controlled by Tata Group of India, which holds 26%. Its shareholder base includes Nexus Connexion, Two Consortium, CommuniTel and state-held entities Transtel and Esitel, Transnet’s and Eskom’s telecommunications arms

But analysts say it will not survive without the unbundling of the local loop.

T-Sec chief economist Mike Schussler says: “I do not believe that the second operator has much of a chance without the local loop opening, as it will then only go to the biggest local firms and offer them access to new services.

“This will mean that home, small and even medium-sized businesses will not get the competition and Telkom will keep tariffs high.”

 

[kaspaas]

“This will mean that home, small and even medium-sized businesses will not get the competition and Telkom will keep tariffs high.”

Not completely true: The higher Telkoms rates are to end users, the better the margins the SNO can get to roll out its own LL. Problem is that it will be the end user that pays for this.

Interesting: The ways and means of providing wireless last mile is becoming better and cheaper all the time.

It could be that the SNO will not roll out a 100% cable last mile (at least initially) and start of with wireless last mile to low density penetration areas (for them) until the number of subscribers in an area warrants a cable operation.

Telkom and Vodacom are aligned.

Cell C and Virgin are getting married.

Me wonders where MTN fits into the picture. Lost of masts across the coutry. No impact studies required to add another antenna. Network between towers well developed.