Telkom finds itself in deep trouble

Crusader said:
Something does not make sense. It's Telkom themselves who are disconnecting people's fixed lines and ADSL...
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All these articles seem to forget that fibre is fixed line as well. Telkom will lose some ADSL customers as they switch people over. ADSL is an old and dying technology that's costing more to maintain than what they can now make under the open market. This was to be expected.

Where Telkom has gone wrong though is in not realising that people will rather go to other providers than use their interim "solutions" they're offering. Iow they're doing too little too late to get rid ADSL.

RedViking said:
Fixed LTE is a temporary solution, but not very consistent and also lack stuff like a private or static IP. Can also be pricey.
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Funny I actually find the IPs on LTE to be too static.
 
jambai said:
If only they rolled out fibre earlier .but they missed that opportunity
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Telkom was a dead company round about 10 years ago. People just never realized it. They did not have the skills, nor the money to even consider rolling out Fibre on large scale. I am actually surprised they lasted this long.
 
Jopie Fourie said:
Telkom was a dead company round about 10 years ago. People just never realized it. They did not have the skills, nor the money to even consider rolling out Fibre on large scale. I am actually surprised they lasted this long.
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Quite the opposite. Also 10 years ago they still had the monopoly so they lacked a bit of foresight.
 
jambai said:
If only they rolled out fibre earlier .but they missed that opportunity
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If they are first in areas and use their current poles and such, they can still do well. Frogfoot now rolling out here, they will need to offer a great deal for me to consider going over from OpenServe.
 
Jopie Fourie said:
Telkom was a dead company round about 10 years ago. People just never realized it. They did not have the skills, nor the money to even consider rolling out Fibre on large scale. I am actually surprised they lasted this long.
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They have more fibre than anyone else 10 fold. But as an ISP they failed.
 
The story looks like various articles patched together and is not necessarily the reasons for the drop in share price. Yes, Telkom (Openserve) subscribers are declining, but not because they are running away but due to the recovery of copper. Ok, there is a few canceling due to bad experience, but every business have them. Where there is no fibre, subscribers is migrated to LTE.
Telkom ISP is at buttom of the ISP rating as they have the majority of subscribers on DSL with low speeds bringing the average down. So the results should be questionable. Would that impact shareholder decisions, i doubt.
Due to Openserve's expensive IPConnect, ISPs would prefer other network providers above Openserve if in the same coverage. This nothing is new, so why impact the share price now.
 
Telkom is done - the killing ADSL is the right move, but as always their execution is horrible and will always be the downfall.

I offered to help - but politics.
 
I paid R4,000 cancellation fee to cancel my Fixed LTE contract with Telkom to move to Afrihost. They have no clue how to compete on customer service.
 
Bradley Prior said:
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.
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Telkom has hold on longer than expected, and only because the bussiness was a good one like communications, thats it.
 
Genisys said:
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.
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:ROFL::ROFL::ROFL::ROFL::ROFL::ROFL:
 
More competition....I remember a day, where Telkom was fighting to be the sole internet provider. Also fighting Skype, back then. Hope Eskom will also have more competition, soon.
 
Telkom can be turned around. They have a massive last mile advantage, and they have (recently) realized that the future is not in ADSL. If they create a compelling roadmap to accelerate fibre and mobile roll out, and piggy back off merged mobile and fibre services, all they need to do is become efficient in the admin side of telecoms, which can be achieved with great systems. Telkom is far from down and out, but they need to act swiftly to pick up the rest of the fibre market as fast as possible.

I have in the last 6 months moved to Octotel 100mb fibre, and can honestly say I have had more fibre outages and worse performance over the last 6 months than I ever had on 10 years of ADSL service. Although not well priced, I seldom had Telkom network issues. If Openserve were to roll fibre services in my hood, I can honestly say I would give them a shot, and if they beat Octotel .. Im there ..
 
Bradley Prior said:
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.
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Telkom inherited a vast monopoly of infrastructure. Didn't maintain it, didn't worry if it got stolen, ignored pleas from it's clients and when the troubles came decided to jump over to the congested mobile market - declaring it the solution. Suddenly it didn't have to worry about cables being stolen at a pace.
And so on. Now chickens are coming home.
Here in Jhb in my street Telkom cable phone users are peesed of at a pace cause Telkom is forcing them to switch to crap Chinese made wifi phones. They want cable phones. And they also have cell phones (usually not from Telkom). So it seems they will ditch the funny mobile/not mobile/but still half mobile phones Telkom gives them and just embrace the Vodacom or MTN mobile they already have.
And phone less. And wait for fibre to use Whatsapp for phoning.
 
jetlee said:
Telkom can be turned around. They have a massive last mile advantage, and they have (recently) realized that the future is not in ADSL. If they create a compelling roadmap to accelerate fibre and mobile roll out, and piggy back off merged mobile and fibre services, all they need to do is become efficient in the admin side of telecoms, which can be achieved with great systems. Telkom is far from down and out, but they need to act swiftly to pick up the rest of the fibre market as fast as possible.

I have in the last 6 months moved to Octotel 100mb fibre, and can honestly say I have had more fibre outages and worse performance over the last 6 months than I ever had on 10 years of ADSL service. Although not well priced, I seldom had Telkom network issues. If Openserve were to roll fibre services in my hood, I can honestly say I would give them a shot, and if they beat Octotel .. Im there ..
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A lit of that last mile has been stolen.
 
Newsflash - Telkom never made any profit from landlines anyway. It was always a huge cost to the company. Reducing copper is actually going to have positive future benefits.

You can blame high exchange rates, slow economy and lagging behind changing technologies for the lower earnings. All caused by our beloved ANC Government. Where is the spectrum everybody needs? 10 years and nothing was done. Vodacom and MTN have huge international earnings to prop up local performance. Telkom is stuck solely in South Africa, unfortunately.

At least one SOE/SOC has never begged for a tax payer bailout...
 
Telkom are their own worst enemy , they have a huge fiber backbone , one would think they would install fiber on all their fiber routes as they have the tubes already installed .
Telkom are the architects of their own downfall .
 
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