SA's telecoms market failure

[Nod]

Source IT-web

Cole contends the USAASA does not have sufficient internal capacity to deliver on its promises. The “weak and ineffective” agency and monopolistic exploitation cost SA R4.2 billion extra in telecoms in 2002. However, the social cost to the country is almost R100 billion a year, he concluded.

 

[bwana]

the country is still effectively serviced by a monopoly

I'd have to disagree - with the low market penetration I would say we're being ineffectively serviced by a monopoly.

 

[Nod]

Point taken

 

[Sneeky]

Everyone seems to understand the problem except uncle Paris, the DoC and their chums over at Telkom.

SA's managed liberalisation policy

Quite diplomacy, managed liberalisation, tsunami protection, all a royal 'f' up.

 

[RoosTa]

Going back to this: http://www.mybroadband.co.za/vb/showthread.php?t=29166

Ok Ivy, I think you've 'f'ed it up quite enough. It's time you stepped down - no jokes.

 

[stix]

I'd have to disagree - with the low market penetration I would say we're being ineffectively serviced by a monopoly.

Perfectly summed up

 

[Skip]

Spend in the telecoms sector is also unusually high – usually it is 3% of gross domestic product, Cole reported. In SA is it more than 5%. “This means resources are being diverted.”

And there you have it folks. If we were in line with international trends we would save 2+% of GDP (a small percentage, but in monetary terms probably a few billion rand) . If you consider that current GDP growth is between 4%-5% and government is desperately trying to get it above 6% you would think that a lightbulb would've gone off over someone's head in govt and they would realise they could much easily attain that desired 6% it if our telecoms costs were lower.

 

[Peppercorns]

Hmmm....can't someone like Richard Branson buy out Telkom, replace it with Virgin and offer really cheap, low rates on everything....

It would benefit him as well as all of us.

 

[curiouswanderer]

Would take 3500 years to increase teledensity in the country by double using current budget. that just shows how 'knowledgeable' our goverment is...

Spineless and useless organisation they are.

 

[Debbie]

Skip, I believe the percentage was 6% two or three years ago.

 

[krycor]

And Ivy says telecoms is not in shambles.. right, we believe you ivy..NOT

 

[antowan]

I'd have to disagree - with the low market penetration I would say we're being ineffectively serviced by a monopoly.

Well said!