Telkom and telecoms pricing

Price war? Telkom is the only ADSL provider in South Africa, who are they going to have a price war with? Until local loop unbundleling happens and other players are allowed to install their own DSLAMs in Telkom's exchanges, there isn't going to be a price war.
 
There is gonna be a price war alright, it will be between them and us. The companies will continually raise prices ever so slightly and rage war on us.

Remember, we are South Africans and we have a reputation for getting f#cked more by telecoms than prostitutes in bangkok gets f#cked by bald western men in their late 40's.
 
moosag said:
PRICE WAR! PRICE WAR! PRICE WAR! PRICE WAR! PRICE WAR!

I Dare You!!!!
Click to expand...

Wakey wakey?

Please man, how do you possibly see this happen?

VC and MTN are listed companies, with shareholders to report to. MTN has some ANC ties, but only for their 3rd profitable network being RSA. (Nigeria and Iran are the cashcows for them).

Now dropping the interconnect rate would just result in maybe a savings on VC's side, since both side's calls terminating on each network can be cancelled out and the difference is payable, so MTN will earn less revenue.

What do you think will happen?

Think?

In a free market?

There you go.

That's what I think too - not much. Al all.
 
moosag said:
PRICE WAR! PRICE WAR! PRICE WAR! PRICE WAR! PRICE WAR!

I Dare You!!!!
Click to expand...

Wakey wakey?

Please man, how do you possibly see this happening?

VC and MTN are listed companies, with shareholders to report to. MTN has some ANC ties, but only for their 3rd profitable network being RSA. (Nigeria and Iran are the cashcows for them).

Now dropping the interconnect rate would just result in maybe a savings on VC's side, since both side's calls terminating on each network can be cancelled out and the difference is payable, so MTN will earn less revenue.

What do you think will happen?

Think?

In a free market?

There you go.

That's what I think too - not much. At all.
 
Last edited:
LOL this article / statement by Telkom is such a joke... Did not know he was a comedian.
 
Is this the opening salvo, to be followed by some advertising spin and then some price reductions/improved offerings?

We have also previously debated on this forum the impact of a price war on the smaller ISPs and Telcos - some will be wiped out or absorbed in the remaining big players.
 
AmaDownload said:
Now dropping the interconnect rate would just result in maybe a savings on VC's side, since both side's calls terminating on each network can be cancelled out and the difference is payable, so MTN will earn less revenue.

What do you think will happen?
Click to expand...

The biggest beneficiary will probably be Telkom as they currently have the shortest end of the interconnect stick.
 
These okes are all gonna get together and start fixing prices, so they can all make the big bucks.
 
moggie said:
Is this the opening salvo, to be followed by some advertising spin and then some price reductions/improved offerings?

We have also previously debated on this forum the impact of a price war on the smaller ISPs and Telcos - some will be wiped out or absorbed in the remaining big players.
Click to expand...

This is exactlty what i am thinking.
 
Please, they just now that they would lose a hell of a lot in the case of a war
 
moggie said:
The biggest beneficiary will probably be Telkom as they currently have the shortest end of the interconnect stick.
Click to expand...

Correct!! HELLkom needs to fork out R1.25 a minute to terminate on the mobile networks while they only pay a portion (not sure but I think like R0.37 a minute) for the same :-)....

Jeroen
 
moggie said:
Is this the opening salvo, to be followed by some advertising spin and then some price reductions/improved offerings?

We have also previously debated on this forum the impact of a price war on the smaller ISPs and Telcos - some will be wiped out or absorbed in the remaining big players.
Click to expand...

Why, yes... I think it is! :D
 
At the 2009 SATNAC conference in Swaziland, Telkom CEO Reuben September was quizzed about Telkom’s pricing, and he indicated that the company is committed to passing operational savings on to consumers.
Click to expand...

Of course it is committed to passing on these savings.. Unfortunately, as we've all seen repeatedly, there are no savings, so they can't be passed on. </sarcasm>
 
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