Telkom and telecoms pricing

rpm said:
Reuben September says lower operating costs will be passed on to consumers, but says a price war is not desirable
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haha... of course a price war is not desirable to you! To us it is!!! :p

.. and it is gonna happen whether you like it or not... adapt or die.
 
Telkom

September said that any business that can not reduce its costs, and pass these savings on to consumers, will suffer in the long term.
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Too late, way too late, once something comparable to Telkom is available, even if it is slightly more, Telkom will suffer cos people (like me for one) will remember.
For e.g., when i was in the vaal, the only option i had was Telkom. If Neotel was there, i would have always chose them.
 
Price War! What is it good for? Absolutely Nothi...oh, wait, it's good for consumers, business, government and NGO's.....
 
"Fundamental"

The Telkom CEO added that the reduction of costs is FUNDAMENTAL to Telkom’s business strategy.
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Fundamental, as in A leading or primary principle, rule, law, or article, which serves as the GROUNDWORK of a system.

Well if the building crumbles from below, the view on top won't last :)
 
Of course a price war is detrimental to your business. That is sort of the point of a free market yes? The fact of the matter is that efficiencies in the business should be driven by pressure from the market not the other way round. Why Telkom believes that the free market works by passing along internal cost savings to the market is beyond me - nothing will ever happen.

No business have a magic "right-to-existence". Business should utilize a society's resources as best they can according to the preference of that society - this is what the free market allows. If they are not able to do it, that business should not exist. Believe me there are enough people and organizations who can do a lot better with the resources Telkom currently has under their control.
 
he indicated that the company is committed to passing operational savings on to consumers.
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...as am I committed to the plight of some random ant who happened to walk by a magnifying glass in a school yard. Does it have any realistic impact?

The CEO however issued a word of warning saying that a price war can damage businesses and hinder investment.
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Investment from who? Another Telco maybe? Do we NEED another Telco? Surely a good telecom's environment where businesses can actually afford to do business will attract substantially more investment?

I'm starting to dislike Reuben September as compared to not having an opinion about him [previously].
 
Mr September, please do note that your very greedy company has just recently hiked line rental to homes and businesses, also call rates for local and long distance calls, and please for, god knows how many times, stop using international call charges to "offset" your percentage. And for the extra gigs on ADSL???? the fact is, its only 0.5gigs extra. for heaven's sake, someone shut this bastard up!!!!
 
I wish Web Africa could get a wimax license. This would finally give Telkom the competition they deserve. Even better, I wish Infraco would be mandated to roll out consumer wimax connectivity on an open basis- where we choose our own isp. Wouldn't that be something!
 
"lower operating costs will be passed on to consumers, but says a price war is not desirable"...bwhahaha!! Yeeeeah riight, who does he think he's talking to? A bunch of ANC supporters? Thanks for your twisted insight into the free market Reuben, but we can think for ourselves on this one... :rolleyes:

P.S. I can just imagine how those "lower operating expenses" will be passed on, next time there's a Telkom price hike they'll just say: "oooh noo, we DID pass on savings to the customers, it just means the price hike is less that it should have been...and we can't show you all the numbers, it would infringe on our competitiveness"
 
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Yet another failed attempt by Telkom to try and explain their high prices...
 
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