Sno

R

rustic

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Hi guys,

When the SNO gets up and running, are they allowed to use telkom's infrastructure or are they going to be setting up their own? The reason i ask is that our exchange isn't digital and according to telkom it's only going to be upgraded somtime in 2008. :(
 
Join the club rustic :)

AFAIK they will be using Eskom's infrastructure for the most part. I heard that Telkom wanted to provide the "last mile" of copper initially but that this would be against the spirit of competition ... so now I'm not sure. Interesting point.
 
Ares said:
Why can't they work together like Vodacom, MTN and Cell C?
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I hope you being sarcastic.
In my opinion, Telkom & SNO working together = duopoly. See any true competition between the cellphone companies of late?
 
I'm not 100% sure, but in the UK competitors can use the exchanges to house there equipment and they "rent" the last mile from BT.
 
MTN / Voda / CellC Cartel, Ster Kinekor / Nu Metro Cartel, i hope against hope the SNO will compete but my head tells me that neither Telkom or the SNO will want a price war and will hold hands whilst screwing the consumer over. ( vaseline not included ) . Just my opinion.
 
mccrack said:
MTN / Voda / CellC Cartel, Ster Kinekor / Nu Metro Cartel, i hope against hope the SNO will compete but my head tells me that neither Telkom or the SNO will want a price war and will hold hands whilst screwing the consumer over. ( vaseline not included ) . Just my opinion.
Click to expand...

This is my opinion too.. I really think it's just going to be a farce.. prices will come down a little, and will be attributed to the new highly competitive environment. The SNO, like telkom, has shareholders who want to make a lot of money. I think the competition will be regulated, and like the cell companies, prices between the 2 will be very similar.
 
Ares said:
Why can't they work together like Vodacom, MTN and Cell C?
Click to expand...

They work together? I've never known of them working together, 'cept in the occasional bit of competition e.g. GPRS data tariffs. I mean, they don't share basestations, do they? :confused:
 
mccrack said:
MTN / Voda / CellC Cartel, Ster Kinekor / Nu Metro Cartel, i hope against hope the SNO will compete but my head tells me that neither Telkom or the SNO will want a price war and will hold hands whilst screwing the consumer over. ( vaseline not included ) . Just my opinion.
Click to expand...

Don't think you have to worry about this, from what I have read, CellC and MTN use some of Vodacom's infrastructure (I stand corrected on this point), which means Vodacom has these other guys by the balls by giving them a minimal discount as a service provider, forcing them to keep their prices in line with Vodacom just to make money. Just business.

As long as the SNO have their own infrastructure and do not have to pay Telkom for use of their infrastructure, this will spark true competition, they will be desperate for business and come out with lower prices and better service. They will be stupid to offer same services for same price, this is no way to gain the market share that they need. Gaurantee better service, and lower prices and people will flock

Remember, they have to make their prices so attractive that people who have contracts with Telkom on their DSL, that it will actually be affordable for them to switch, and cancel the contract.
 
Ares said:
One thing that worries me is the fact that Eskom pulled out....
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Ares, Can you post the source of your information here please, I would like to check this out, and see what the motivation was behind this.

Buster
 
Speaking on the Moneyweb Power Hour on Monday evening, Transnet CEO Maria Ramos said Transtel was considered a non-core asset and the intention was to sell it: “Yes, absolutely. I mean we’ve said that from the beginning, I think. Ourselves and Eskom are in exactly the same position. We do not see ourselves holding on to our stake in the SNO for longer than we need to. It's definitely a non-core asset.”

Ramos did not elaborate on the timing of the sale.
 
Transtel and Esitel (Eskom's telecoms division) are both stakeholders in the SNO. Transnet's decision to sell off Transtel (and any possible move by Eskom to dispose of Esitel) shouldn't affect the SNO at all. It is simply a business decision to dispose of a non-core asset.
 
For the SNo to have any chance of succeeding the 'lastmile' needs to be opened up to them and rental rates for that should be determined by ICASA. It will take ages for the SNO to build it's own local loop ... it would essentially mean the digging up of every sidewalk in the country which I don't think is going to happen soon.

In my opinion the SNO is a waste of time anyway Icasa should just have opened up the market to anyone with enogh capital and a decent bussiness plan (and obviously some BEE deal). By now Telecoms would have been reformed...

The SNO will be exactly like the Cell C MTN Vodacom consortuim they number one don't have the war chest to take on Telkom and number two if I could charge Telkom like rates and get way with it I would
 
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