Price Complaints Ring True

[rpm]

http://allafrica.com/stories/200504210221.html

"Ideally, a bundle of goods should be analysed, as telecommunications providers sometimes subsidise price decreases in one product line with increases in another (think, for example, of the 316% increase in three-minute, peak-time local call prices in SA between 1997 and 2003, versus the 32% decrease in international call rates between 1998 and 2002)."

 

[stoke]

Okay - I oficially apologise the the South African Foundation. For now ...

 

[[)roi(]]

Okay - I oficially apologise the the South African Foundation. For now ...

Make that 2 of us.
Wow we had an idea we were getting screwed, but the truth is even more sinister... We're bending down and taking it right up the rear...

 

[[)roi(]]

I don't apologize!

The purpose of the study was not to slam Telkom but its mission was "promoting enterprise and an environment conducive to the conduct of business".
The fact that it found only Telkom to be inhibiting factor in this mission still just reaffirmed what we have known for all these years. As a group the SA Foundation and the DTI have to put their foot down and say enough is enough. They should be given an ultimatum or be kicked out of the foundation.
If nothing happens then report would be meaningless.

You're right, why did this take so long to do, and what do they intend to do about it... Actions are what's missing now...!

 

[eye_suc]

Like Vapi said, "It's a process"

 

[martin]

Nice article. I like how carefully every single point is explained. We should consider comparing our broadband products to the countries mentioned in the article when compiling our next broadband report. We could even borrow some of the wording in there.

 

[bwana]

"Ideally, a bundle of goods should be analysed, as telecommunications providers sometimes subsidise price decreases in one product line with increases in another" - My response - four point five BILLION rand PROFIT. Subsidization? Where?

 

[Alkine]

Like Vapi said, "It's a process"

a process we will do anything to delay....

 

[RoosTa]

How much profit does Telkom make, in comparison to other leading telecoms companies?

 

[arf9999]

I don't apologize!

dude, you need to put your tinfoil hat back on. Just because big business is out to make a buck, doesn't mean that they want to mess up your life. It is purely incidental that that is the effect.

 

[Vasb8]

How much profit does Telkom make, in comparison to other leading telecoms companies?

Exactly as much as they want to. That is what a Monopoly actually means. Comparing it with the profits of Telecoms competing in the open market is like comparing apples to pears IMHO

 

[[)roi(]]

How much profit does Telkom make, in comparison to other leading telecoms companies?

That apparently is the problem, not enough!

 

[piet2]

Maybe thay are trying to make as much as can they can , they are realising competition is on the way.

 

[nOhIwAy]

How much profit does Telkom make, in comparison to other leading telecoms companies?

Agreed and, I think more importantly, ....

What is telkom's unit cost per subscriber line (ucpsl) in
comparison with other leading telecoms.

I would guess that telkom's ucpsl is way out of line ..

It's plain and simple telkom is incapable and unable to deliver a competitive
telecoms service - they just beating themselves into the shape of a white elephant.

 

[[)roi(]]

Maybe thay are trying to make as much as can they can , they are realising competition is on the way.

It's not uncommon in SA to do this. Another example of a GOV monopoly was Sasol and a little thing call the Sasol supply agreement. All the other players were forced by GOV to buy all that Sasol could produce. Now simply that's a great position to be in. But things have changed for Sasol, they now have to sell their own product, no more GOV agreement. But for the many years that they had this agreement they built a massive empire + lots and lots of cash...
Of course Telscum is doing the same, it would be silly not to do this, especially when you have GOV approval...
Hopefully a time will arrive when Telscum too have to market their products, rather then the public being forced to use them...

 

[[)roi(]]

It's plain and simple telkom is incapable and unable to deliver a competitive telecoms service - they just beating themselves into the shape of a white elephant.

Actually I think Telscum have realised that they are not a competitive telecoms service, why else would they have wanted to retrench a lot of dead weight, for no other reason but to prepare for competition, but until that comes why not continue with profiteering...

 

[MaD]

I read something somewhere sometime about a hostile takeover - what is it?

 

[bHOLDher]

How much profit does Telkom make, in comparison to other leading telecoms companies?

This should be pretty easy to find out if someone has a bunch of time and is willing to find the apples and compare them with telkom's financial results, since its all public info...

I thought BT would also have Return On Investment % and operating Profit % like Telkom, but I cant find it, and Im not sure which figures to use..

HELP!

 

[[)roi(]]

I read something somewhere sometime about a hostile takeover - what is it?

Telkom hostile takeover? No can't say that I have, would be an interesting read if you could find it though...