Telkom Basks in Profits

[Peapod]

http://allafrica.com/stories/200506100398.html

Shareholders -- who will be getting a R9 dividend for shares some bought for less than R30 -- were delighted. Politically, the results were more ambiguous, with Telkom customers grumbling about being overcharged and the Democratic Alliance calling the results "embarrassingly good".

Telkom management were not about to be drawn into that kind of debate. "We are not apologetic about our profits," says Telkom CEO Sizwe Nxasana. "I'm in the business of making money; after all, we live in a capitalist society."

But privately some Telkom managers admit that the situation is a difficult one. If the company makes too much money, it is accused of doing so at the expense of the broader economy and exploiting lax government regulations. If it makes too little money, it will be crucified by shareholders and the government alike. ...........Nxasana says "It used to be acceptable that the white population made money ... Are we now suggesting that black companies should be socialist while the rest of the world is capitalist?"

"We are not apologetic about our profits," says Telkom CEO Sizwe Nxasana. "I'm in the business of making money; after all, we live in a capitalist society."

so that makes raping the public alright then - all in the name of capitalism.
I wonder if i was a bread manufacturer (monopoly) who sold my bread for R55 a loaf so that only 10% of the population could afford it...would that be okay because we live in a capitalistic society or would the government and the public do something to end my reign? Telkom's policy and pricing is OPPRESSIVE.

Nxasana says "It used to be acceptable that the white population made money ... Are we now suggesting that black companies should be socialist while the rest of the world is capitalist?"

Oh oopsy daisy. just when we thought it was just plain money mongering, out comes the race card to defend the obscene way telkom makes its money.
WTF. I'm sickened.

 

[arf9999]

Capitalist=competition.
Monopoly=socialist.

thus, yes I expect Telkom to be socialist until they have competition.

 

[fergus]

Its funny how he says he's 'in the business of making money' while in actual fact they're exploiting the monopolistic situation and everything gets handed to them on a silver platter, as it were. I'd like to see how well he'd do in a real competitive environment like the US or UK. Not very well at all I'd imagine.

 

[BTTB]

Capitalist=competition.
Monopoly=socialist.

thus, yes I expect Telkom to be socialist until they have competition.

Agreed.
Basic Economics.

"We are not apologetic about our profits," says Telkom CEO Sizwe Nxasana. "I'm in the business of making money; after all, we live in a capitalist society."

I think Mr Nxana has got a bloody cheek to make such a statement.
This is not a Capatalistic Market!!! What is he talking about?
Economics 1. Go back to school.
The Cell Phone Market is a Cartel of which Telkom milks 50% from Vodacom.
Cartel/Monopoly. Hardly a Capatalistic Marketplace.

It used to be acceptable that the white population made money ... Are we now suggesting that black companies should be socialist while the rest of the world is capitalist?"

Arg Puke, here we go again.
I thought we had got past this.

You silly little man. You have missed the point completely.
We moan everyday about Telkom, because it is the single biggest barrier to IT in South Africa.

These people will simply say anything to enrich themselves further. They are writing History here. Dont they realise what they are doing? We will look back at this period as the years of lost opportunity. It is so sad to see a Utility like Telkom being wasted on a few thick skulled individuals with fat wallets.

 

[aborg]

Its easy to speak from the top, when the telecoms environment was created to benefit this monopoly. Not really difficult for them to make a profit when the government is in on it too. The wheel turns, be careful that you don't choke on your own profits.

 

[-toady-]

*It is so sad to see a Utility like Telkom being wasted on a few thick skulled individuals with fat wallets.*

X 100!!

WretchedToad

 

[stoke]

Stop blaming the CEO people. It's governimt's fault. And it's going too happen next year as well, the least we can do is point fingers in the right direction.

 

[Debbie]

/me looks forward to receiving the R9 dividend from the one share collectively owned.

/me does not look forward to having to distribute R9 between 4 people.

 

[Perdition]

You Capitalist you

 

[MaD]

Its funny how he says he's 'in the business of making money' while in actual fact they're exploiting the monopolistic situation and everything gets handed to them on a silver platter, as it were. I'd like to see how well he'd do in a real competitive environment like the US or UK. Not very well at all I'd imagine.

LOL he wouldn't know what hit him.

 

[CreepyCrawley]

He'd probably try and moan at the local government "Aren't you supposed to help me? Whaaaaaaa!"

 

[TheRoDent]

Fact is, that even tho it's a monopoly, anyone can buy Telkom shares (and were offered Telkom shares).

That makes it capitalist. The fact that they're the only player in their industry doesn't detract from that fact that any shareholder can share in their profits and share price increases.

What Sizwe SHOULD be apologetic about is that his profits have been made off the back of already paid for infrastructure, and technical slave labour. He should be apologetic about paying his staff a pittance. He should be apologetic about unfair business practice.

 

[Landar]

"I'm in the business of making money; after all, we live in a capitalist society."

That comment really made my blood boil! How dare he say such a callous thing when they are running a MONOPOLY!!! Obviously businesses need to make money, but their profits are exorbotant given they are part govt. owned and should have the publics interest at heart.

"It used to be acceptable that the white population made money ... Are we now suggesting that black companies should be socialist while the rest of the world is capitalist?"

WTF!! Telkom being mostly black or white owned has ABSOLUTELY NOTHING to do with the way people feel about this issue. What an inopportune time to pull the race card. It seems like he is trying to justify their huge profits by the fact that the white population made money during apartheid, nevermind that their high prices have a more profound effect on the millions of black people who can't afford a phone lines! What on earth is he trying to say here?

It seems to me, that in his own mind, he uses apartheid to justify these profits. Like a way to get back what was taken away. Unfortunately it just takes more away from those who were previously disadvantaged.

Maybe I'm off the ball here, but either way, I have a strong dislike for Sizwe.