Telkom Cell C tie up?

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Telkom Cell C tie up?

A Telkom, Cell C tie-up makes sense and could also short-circuit the regulatory lag

 

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It means the prospects for a landline-based company are so bad that its real function is to morph into something that it is not.

This is exactly the kind of bizarre "mobile mentality" that seems to have beset much of the thinking about telecoms in developing countries, and apparently actively encouraged by amateur commentators and some analysts.

Mobile has certainly grown rapidly to deliver services to people (as opposed to places, like offices and houses), and has become a de facto substitute for poor fixed line services in many developing countries (South Africa included). However, this does not mean that mobile is all there is to telecoms, and it certainly doesn't mean that mobile is the answer to future broadband (and especially FTTx) demand, or to the rest of the revenue-generating telecoms space, dominated by corporate communications, not individuals.

In most developed countries, the need for broadband, fixed (place) communications is recognised alongside mobile. There is not often confusion between the two, and there is a narrow overlap, where substitution takes place. Analysts looking at operators in these countries certainly support the idea that a balanced operator looking to the future should have exposure to both mobile and fixed, to take advantage of the best of both, but that's not the same as assuming that fixed is dead.

To take the example at hand, Telkom would be a much more profitable company if it only provided corporate fixed line services, and didn't have to deal with a large base of consumers. Its revenues would be somewhat lower than they currently are, but its data growth prospects would probably be higher. There's no question of improving this by morphing into a mobile company. Just exactly how do you substitute a national STM-1 leased line by a cell phone. Does Lesley Stones even know what an STM-1 is?

 

[The ONLY (k) = Delta]

I believe that the advent of FMC (Fixed Mobile Convergence) will make it attractive for any fixed wireline operator to have it's 'mobile' part of the convergence equation under 'it's own control'

Just exactly how do you substitute a national STM-1 leased line by a cell phone.

 

[The ONLY (k) = Delta]

Not only that, as we know, any mobile operator will need serious backhaul (in the metropolitan areas in the form of several 100's of 'fat pipes' like STM-1's) - even more important as FMC moves ahead. Therefore the fixed wireline operator scores in the FMC domain expanding it's 'fixed profile' and the mobile operator (as part of the 'alliance') gets the benefit of serious backhaul (provided by an operator already seriously involved in this backhaul process)

 

[TimTDP]

Telkom-Vodacom did not work, so why should Telkom-Cell C?

 

[InTheCube]

Telkom-Vodacom did not work, so why should Telkom-Cell C?

Because Vodacom was 50% owned by Telkom, and 50% owned by Vodafone, and Vodacom was constrained by a very restrictive shareholders agreement.

A Telkom-Cell C tie up could work if Telkom bought out Cell C entirely, or at least bought out the majority of the shares, giving it full control.

Also, the telecomunications landscape has changed dramatically in the last 3 years, and so Telkom will HAVE to make such a tie up work, or die a slow horrible death. They don't have the luxury anymore of leeching off the profits from a 50% stake in a cash-cow.

 

[NathanCrow]

if the deal happens then telkom will have a wide 3G coverage making cell c to have the fastest and cheapest 3G available 7.2 and cashing in on it

 

[The ONLY (k) = Delta]

ToxicWazte / NathanCrow - you've got it! - couldn't have said it better myself! The 'provisor' is that Telkom (and I'm no REAL friend of Telkom since they are the reason we're sitting with the high Tele- / Data communications costs we have!) must get their IMS or 'Packet Switched' Network, however you want to call an ALL IP Network!, sorted out! - and get rid of the CCT Switched / TDM Networks ASAP! Fixed Mobile Conversion (FMC) is happening faster than what we realize!
Neotel, and I'm a LITTLE unimpressed with their rate of roll-out!, with their cooperation with MTN, and MTN's foray into the possibility of working with the likes of Verizon (GPON/PON in the USA!), COULD BE in a position to start offering all the 'niceties' offered by an IMS! - liked hosted PBX's, IPTV with Video-on-Demand and educational TV on the forefront and NOT least of all, FAST INTERNET WITH PREDICTABLE NETWORK DELAY for our gaming community!, but, at the current pace we may wait a while!