Quo Vadis Telkom?

[The_Unbeliever]

Telkom is between a rock and a hard place.

The way I see it is :

Currently Voda and MTN are big customers of Telkom, and ensure a tidy bit of profit for Telkom.

Now, what if Voda and MTN decide to self-provide? Meaning that they won't be dependent upon Telkom anymore, and that Telkom will lose a sizeable portion of income.

Which means that the shares will be affected.

Shareholders will call for action, prices will be jacked up to make up for the sudden shortfall, and more people will disconnect their fixed Telkom lines. A vicious circle.

Discuss what you think need to be done. And LLU must also be part and parcel of the action plan.

 

[RazedInBlack]

Unbundling will happen, its just a matter of time as when!

I don't see MTN or VC self-providing int the near future but Telkom is moving to compete in the mobile segment with a roaming agreement with MTN.

I don't see an issue here.

 

[The_Unbeliever]

I don't see an issue here.

There is an issue.

Since the Govt got a majority stake in Telkom, and Telkom folds, then our taxpayer money will be used to prop Telkom up. Might happen, might not happen.

 

[The_Unbeliever]

I don't see an issue here.

There is an issue.

Since the Govt got a majority stake in Telkom, and Telkom folds, then our taxpayer money will be used to prop Telkom up. Might happen, might not happen.

 

[Sting]

Loss of revenue from providing mobile links?

Vodacom and MTN and CellC had Telkom by the short and curlies.

They would self provide to all their easily and cheaply accessible sites and then park hundreds of expensive and near impossible to reach sites in Telkom's lap.

In the past Telkom were forced to accept all orders and paid the price. However, now they are performing feasibility studies on each order and rejecting certain ones and forcing the mobile operators to self provide to these sites.

So the loss of revenue is being more than balanced out by the savings on capital expenditure and associated maintenance costs.

LLU will happen. If DoC and ICASA are to be believed then it should be here in 18 months time.

 

[RazedInBlack]

LLU will happen. If DoC and ICASA are to be believed then it should be here in 18 months time.

LMAO! They said that 5 years ago as well.

 

[Sting]

You ask the question "will you stick with SAIX/Telkom?" but then you don't give an option to say "YES".....

 

[Sting]

LMAO! They said that 5 years ago as well.

Correct. So whose problem is that? Telkom's? No.

 

[RazedInBlack]

Correct. So whose problem is that? Telkom's? No.

I agree moggie! DoC especially has been dragging their asses for a long time making empty promises and blamimig ICASA when things go south.

Government! Go figure!

 

[Sting]

I agree moggie! DoC especially has been dragging their asses for a long time making empty promises and blamimig ICASA when things go south.

Government! Go figure!

Govt has too much of a vested interest in Telkom via their shareholding as well as the Elephant consortium (ANC). This is causing a massive conflict of interest. Time for them to depart from the scene!

 

[The_Unbeliever]

Govt has too much of a vested interest in Telkom via their shareholding as well as the Elephant consortium (ANC). This is causing a massive conflict of interest. Time for them to depart from the scene!

+1

 

[Sting]

+1

Change poll, please?

 

[Kosmik]

It's not going to help government , no matter how much tax money they throw at the problem, if Telkom loses customers.

 

[Sting]

It's not going to help government , no matter how much tax money they throw at the problem, if Telkom loses customers.

atm Govt are not throwing money at Telkom... it's the other way around!!!!

 

[Ockie]

Now, what if Voda and MTN decide to self-provide?

They have already started to self provide if I am not mistaken by building their own metro fibre loops and connecting base stations to to the fibre. Also they are starting to make use of more and more micro wave backhaul. I see more and more BTS's with cute little microwave dishes on them.

Someone said that Telkom will make a big saving on not having to accept all orders that the mobile operators placed with them for backhaul. I dont think so. Vodacom will most likely start using their own backhaul on more and more towers, meaning that all that revenue generating traffic is now being taken away from the Telkom network completely. Big chunk out of their renenue not so????

Telkom does seem very happy to stagnate when it comes to new tech and offering its clients better pricing and deals...so they deserve what they get. I am worried though that should they land themselves in a big financial boo boo, that our tax will have to bail them out. They are still a goverment entity, and no different from SAA. When the k@k hits the windscreen, our money gets used to wipe it clean. bleh!!