Telkom CEO Leaves

[w1z4rd]

Now if only Ivy would quit

Its a dream the nation has.

 

[ToxicBunny]

I definately agree with ic...

The entire telecoms upper order in this country needs to be purged and publicly flogged in my opinion for the damage they have done to this country...

 

[Debbie]

Depends what side of the fence one is on but there's lots of drama at Telkom happening behind the scenes that doesn't reach the media. Telkom's a mess at the moment & numerous people are hitting the panic button & leaving. Papi's announcement was made at a good time as well (for them), over the easter weekend the share price won't take the same kind of knock it would have if the announcement were made on, say, a Monday.

Yet seems Telkom misjudged this Easter-weekend SENS release since the shareprice rose 2.7% in the mere six minutes between issuing and close of the markets. The market reacted favourably to news of his departure.... but still early I guess, and we'll see what happens when markets re-open.

 

[StefK]

Probably the first "customer centric" thing Telkom has done this year...

Anyway, as soon as I take a holiday this happens!
I'm leaving again maybe my wishlist below comes true too.

Hopefully a certain idiot named Steven Hayward will be next...

Agreed, if only for Telkom's sake. This tool is a joke.

Ivy next - else no hope...

Bring me the petition, please...

 

[AirWolf]

MaD is the proud father of this baby...

Ahh, the famous creator of Hellkom

 

[Gatecrasher]

Depends what side of the fence one is on but there's lots of drama at Telkom happening behind the scenes that doesn't reach the media. Telkom's a mess at the moment & numerous people are hitting the panic button & leaving. Papi's announcement was made at a good time as well (for them), over the easter weekend the share price won't take the same kind of knock it would have if the announcement were made on, say, a Monday.

I think the mess is already reflected in an underperforming share price. Investors will see this as positive for the share.

The economy is booming but Telkom's footprint i.r.o. fixed line infrastructure has been shrinking. Rather than growing revenues, expanding their market and reaching new customers, they have been cutting costs and shrinking behind their Vodacom shareholding. There has been no vision, no risk taking, no cohesion.

There is just this cash cow that is being milked until the milk runs out. That is not a good message for investors. Investors want to see a company that is dynamic, that is rapidly expanding its revenue streams, that is a respected brand, and which has a clear vision for the future.

Broadband pricing is just symptomatic of the overall problem. They have not attempted to capture the largest potential market by offering an affordable, cost-related product, but have rather sought outlandish margins, and to rape the fortunate few who can afford it. That is a strategy that can work for a short while. Ultimately it will backfire.

The sound of Telkom's strategy (or lack of it) backfiring is now becoming audible.

 

[eremos]

The economy is booming but Telkom's footprint i.r.o. fixed line infrastructure has been shrinking. Rather than growing revenues, expanding their market and reaching new customers, they have been cutting costs and shrinking behind their Vodacom shareholding. There has been no vision, no risk taking, no cohesion.

There is just this cash cow that is being milked until the milk runs out. That is not a good message for investors. Investors want to see a company that is dynamic, that is rapidly expanding its revenue streams, that is a respected brand, and which has a clear vision for the future.

Very well said.

 

[redheadfan]

My opinion of what really happened:

For the last year or so much speculation and plans have been made about the end of Telkom's stranglehold on international bandwidth.

Businesses have been making plans and foreign investors and international companies have been sold on the fact that these plans are materially afoot and although communication costs are high now they will be internationally competitive in 2 or 3 years time.

Bear in mind many members of our government are stakeholders in these businesses.

EASSy - Papi signed when he shouldn't have. He saw a good opportunity for Telkom to retain some control over international bandthwidth and for Telkom to potentially form a cartel with Neotel and the Cellphone companies and thus retain high prices and continue profiteering.

This action has gone against promises that government has been making to big businesses and is hurting members of the government in their back pockets.

The government had to do something and despite all of its apparent control (and the fact Ivy hasn't put her neck anywhere near the chopping board in recent months) this was one of the few actions it could take. Government also needed to show that it has some control and that its 6 members on Telkom's board counted for something.

One thing that is certainly fact is that Papi was fired - You don't resign without notice or a far better job in your sights.

 

[AirWolf]

Points taken, but where to from here? Is government genuinely concerned about reducing telecommunications prices? And will they influence the appointment of a reliable individual who can get the job done?