Telkom at the crossroads

Moreover, if Telkom and Cell C's partnership does go ahead, Telkom will be partnering with a cellular operator generating no profit at present.

It will have to improve Cell C's performance - probably at high cost.

Another snag for Telkom is that Cell C does not have its own high-speed internet and 3G network yet. It would have to expedite the activation of its 3G network to be more competitive against MTN and Vodacom, particularly on high-speed data and multimedia services.
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So in short Cell C suck ;)
 
So can telkom actually decide on anything worth while?
 
Telkom's entire strategy is wrong. Years of inefficiency is catching up with them. They've got quite a bit of a drop ahead before any sort of recovery.

Cell C on the other hand is a company on the up. I think they need to look into Data more. They don't neccessarily need to upgrade to 3G (although it would be beneficial), but they need to push data using edge. Email on the go (the backberry concept) could work for them and their users.
 
Cell C needs to leverage some local skills. This would require it to defer from AA/BEE in the medium term or at least get critical skills in at medium and top management level. There are skills right here in SA for them to tap into, but pay for it damnit!

Oger will end up with the Telkom stake. Of that I have no doubt whatsoever.
 
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