Telkom finds itself in deep trouble

Bradley Prior

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Telkom finds itself in deep trouble

Telkom is in deep trouble. Its fixed-line customers are leaving in droves, it has a serious reputation problem, and its debt burden has increased to worrying levels.

In its latest trading statement, Telkom warned that its earnings per share are expected to decrease by 30% to 40% compared to last year.
 

Jopie Fourie

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Something does not make sense. It's Telkom themselves who are disconnecting people's fixed lines and ADSL...
I saw this happening 10 years ago already where they left entire neighbourhoods without fixed lines and Internet. Later everyone who wanted lines were forced onto the old 8TA wireless phones.

I think they took a gamble back then and planned to get rid of all fixed network infrastructure, including ADSL and move solely to Mobile, which is now backfiring miserably on them.
 

waylander

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ShareholdersTelkom SA SOC Limited (ZAE000044897)Telkom SA SOC Limited (US)
NameEquities%
Government of South Africa207,090,84140.5%
Public Investment Corporation (SOC) Ltd.63,457,41812.4%
Telkom SA SOC Limited14,125,5572.76%
Dimensional Fund Advisors LP13,693,8282.68%
LSV Asset Management11,756,2252.30%

55.66% owned by the South African government :unsure:
 

RedViking

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Telkoms mobile side is probably going the same direction as Cell C. Once they cut my ADSL line I'll have to look at alternatives.

Fixed LTE is a temporary solution, but not very consistent and also lack stuff like a private or static IP. Can also be pricey.

Fibre is great. But again it's expensive to install, very difficult to get if you in an estate or complex that doesn't have the infrastructure. Signing a 24 month contact is also not an option.


In the end we will still only sit with Vodacom and MTN controlling the market.
 

CaptainPugwash

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Telkoms mobile side is probably going the same direction as Cell C. Once they cut my ADSL line I'll have to look at alternatives.

Fixed LTE is a temporary solution, but not very consistent and also lack stuff like a private or static IP. Can also be pricey.

Fibre is great. But again it's expensive to install, very difficult to get if you in an estate or complex that doesn't have the infrastructure. Signing a 24 month contact is also not an option.


In the end we will still only sit with Vodacom and MTN controlling the market.
Fully agree with your comment!
 

Odracir

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Telkoms mobile side is probably going the same direction as Cell C. Once they cut my ADSL line I'll have to look at alternatives.

Fixed LTE is a temporary solution, but not very consistent and also lack stuff like a private or static IP. Can also be pricey.

Fibre is great. But again it's expensive to install, very difficult to get if you in an estate or complex that doesn't have the infrastructure. Signing a 24 month contact is also not an option.


In the end we will still only sit with Vodacom and MTN controlling the market.

I'm doing the same. I've already received communication that they going to cut my ADSL and I must consider moving to their LTE solution. I'd rather take a LTE solution from someone other than Telkom.
 

Genisys

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This is strange indeed. A company happily handing its customers to competing network operators because it cannot roll out fibre affordably.
I suspect they will eventually start backtracking on their decision to kill off copper. In some areas it doesn't make sense, especially considering they only started installing MSAN's in the past 7 or so years. Maintaining the copper network will also not be difficult if they actually started with preemptive maintenance instead of rushing to fix fault after fault. Killing DSL in areas where there isn't fibre but there is a lot of subscribers will bite them quickly.
 

RedViking

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I'm doing the same. I've already received communication that they going to cut my ADSL and I must consider moving to their LTE solution. I'd rather take a LTE solution from someone other than Telkom.
Already tried their LTE. It is highly unreliable and the speeds are some times unusable and fluctuates greatly. Evenings it is the worse. Can be anything from 30mbps to 10kbps
 

supersunbird

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The worse thing is, Telkom knows exactly where the ADSL customers are and in which numbers and densities, they have a very big information advantage over other fibre installers, they should just start roll out where highest customer density is and then work down the list.
 

Utterly Confused

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Telkom was never going to be a success in any event. There is not a single thing the ANC has ever started in their lifetime, not only their rule, that ever worked. Everything, every idea just simply turned to s**t.
And now the cANCer wants to introduce the NHI. Don't they ever learn. EPIC FAIL.
 

Eric

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This is strange indeed. A company happily handing its customers to competing network operators because it cannot roll out fibre affordably.
There's a saying about Telkom and Post Office that comes to mind. Unfortunately I have to occasionally use both from time to time. I've been happy with my mobile subs but yoh.... they are not even an option for most for any sort of fixed line service.
 

Milano

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Feb 7, 2004
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Telkom is a company that does not want customers. I had two residential fixed lines at one property. Moved the one line to FLLA two years ago. A year later I requested the second line be moved to FLLA. They told me my area did not qualify for FLLA. I told them it is the exact same property in the exact same area as the previous line. She said it does not qualify. Then I spoke to the supervisor who advised that they have prioritised high copper theft areas so my area no longer qualifies. So I cancelled the line as the number of faults on copper made it not worth keeping. How hard is it to digitally move a fixed line to FLLA? Thought they wanted us off copper? They appear to prefer having no customers so good for them then :thumbsup:
 
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