Telkom gets thumbs down

what they don't realise that they will lose more market share than expected if they don't jack themselves up when SNO releases their products
 
Molotsane said Telkom is also embarking on a major drive to improve customer satisfaction.

I have a feeling Telkom underestimated just how much the public hates them. If their share price have fallen 7% today, imagine when the SNO comes out!!

I'm beginning to see light at the end of the tunnel after all!

Burn, Telkom, Burn!!!
:D
 
I wonder where they expect to GET the $5billion from - certainly not from sales.... (i hope :D ) Afterall, the SNO is due soon...
 
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They will have to realise they are not invincible sooner or later.
 
He said broadband would be a natural area for growth and that broadband penetration is very low when compared with developing countries with similar gross domestic product per capita growth figures.
so they fully aware of it, just refuse to admit its their fault :rolleyes:
btw what happened to steven white lies? been a while since we heard any threats from him...
 
Molotsane also said “tighter and rapidly changing regulations” – with cost-based pricing being introduced by the Independent Communications Authority of SA (Icasa), and the changes to be introduced by the Electronic Communications Bill as a challenge.
I thought that the regulations were being loosened. Probably depends on your view point...
 
Veiled Threat from Telkom?

Molotsane said he expected “there will be some form [of unbundling], full or partial, we don’t know, but we will be innovative around this”.

Is it just me, or is this a veiled threat that Telkom will find innovative ways to still charge exhorbitantly high fees and try to make supernormal profits off consumers - either directly or indirectly?

Come on Mr President, let's get the new Bills signed and passed into law already. Only then can competition truly begin and services improve whilest costs decline.
 
rpm said:
http://www.mybroadband.co.za/nephp/?m=show&id=2442

"A loss of market share does not mean lower revenues, though. Molotsane said he expects a 15% to 20% increase in broadband (ADSL) lines to one million customers within three to five years’ time."

That looking glass is a bit dim i think... they can't even install that fast... six weeks for a new line... by then weve all given up and are using faster cheaper wireless...
 
Even if they get 20% growth per year, it adds up to 323,000 lines!!!

130,000 + 20% = 156,000
156,000 + 20% = 187,000
187,000 + 20% = 224,000
224,000 + 20% = 269,000
269,000 + 20% = 323,000
:confused:

Maybe Papi flunked Maths
 
Hi WillS

Papi is talking about ADSL line penetration rate. There is currently around 4-5 million fixed lines, and a penetration rate of 20% will therefore be close to 1 million broadband users.

Looking at WillS’s calculations, it is interesting to note that Telkom needs to show a broadband growth of 100% year to year to achieve their target.

Regards,

RPM
 
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Thanks RPM :)

It is still shocking to find that Telkom isn't interested in installing more lines though :(
 
With any luck *prays fervently* Telkom share prices will drop which may force them to hike their prices (not only on broadband) to such a degree that when the SNO becomes active people will drop like flies.

Personally I think that the way Telkom has been going it's going to get a lot worse for us before it gets better.

Aah well.
 
introduce bandwidth on demand services ....

What kind of services would this be exactly? We're already on a per GB billing model?!

:confused:
 
I think the whole line installation and universal access policy needs to be reviewed, when Telkom was formed i think it was hopped like Eskom they would provide terestrial lines as well as service. But obviously they go where the money is, so why place lines in a poor area where residents can't afford it seems to be their idea. Anyhoo i reckon that was gov. mistake, they should have retained LL as part of infrastructure of country/municipality? maybe or atleast make it separate company to manage other than the service provider.

Question i'm wondering is with LLU, who's resposibility is it to lay telecom's cabling in new/underserviced area's probably telkom, but in the case of under serviced area's that means if they don't plan on servicing a comunity the sno can't access potential customers too on a fixed line unless they lay cabling themselves. In which case its like a loss if customer switches.. man they gonna have to keep track of who laid what?

In a sense Telkom seem to wanna kill their own market for voice products(finally?) such that the new sno will not beable to gain as much as they have for past few yrs. This R30bn is likely for refurbishing/renewing their network since sno can lay perhaps a ngn instead of relying heavily on 'older tech in some places and stick it all together' approach?

The other thing is they are assuming they won't loose control of sat-3. I think they have realised that they will loose the LL sooner.
 
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rpm said:
Hi WillS

Papi is talking about ADSL line penetration rate. There is currently around 4-5 million fixed lines, and a penetration rate of 20% will therefore be close to 1 million broadband users.

Looking at WillS’s calculations, it is interesting to note that Telkom needs to show a broadband growth of 100% year to year to achieve their target.

Regards,

RPM

Telkom can forget about a million users in the period mentioned if they do not drop the price. They might do it if they can get dialup classified as broadband. :rolleyes:
 
Chief sales and marketing officer Wally Beelders says that the introduction of the SNO may see Telkom losing up to 15% of market share over five years, but that this is a bearish outlook. However, this is totally in line with what has happened in the UK to British Telecom, which lost between 10% and 12% loss.
Speaking from my perspective they will lose more than that. Oh, sorry I forgot I'm not a Telkom customer, so they can't actually lose me :D
Strategically, Telkom’s target for 2010 is to be the information communications technology (ICT) leader in three countries outside SA. Molotsane said the company “has its ears on the ground” and is looking at several opportunities in Africa, including Kenya. Also, Nigeria was not off the screen.
Now we know why they can't hear anything we've been trying to tell them all this time.
 
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