Telkom-Infraco super network will create massive monopoly

[Jan]

Super network will give Telkom a massive monopoly

Merging Broadband Infraco’s network into Telkom will strengthen the incumbent operator’s fixed-line monopoly.

 

[j4ck455]

I hope the Competition Commission kills this merger with fire.

As for the failed Broadband Infraco state owned company, we all know that Neotel is not in a position to merge with BI, but Vodacom or MTN might be interested or determine if BI's fibre optic and other assets can be sold off in smaller chunks maybe regionally.

 

[bekdik]

Remind me as to the history of the SNO ...

 

[j4ck455]

Remind me as to the history of the SNO ...

SNO Telecoms (Second Network Operator Telecoms, aka SNOT) was licensed by ICASA towards the end of 2005 and later changed its SNOTty name to Neotel.

 

[Paul Hjul]

I hope the Competition Commission kills this merger with fire.

As for the failed Broadband Infraco state owned company, we all know that Neotel is not in a position to merge with BI, but Vodacom or MTN might be interested or determine if BI's fibre optic and other assets can be sold off in smaller chunks maybe regionally.

Not likely to be in the Comp Comm as we are dealing with a State entity migrating assets at the behest of another State entity until after the transaction is finalized. However once the transaction is done well we are back to Telkom and SAA in the CompComm land ...

 

[LazyLion]

Remind me as to the history of the SNO ...

The government promised to give BI's network to Neotel when the first became the SNO. The government later backtracked (some say it was Telkom's influence - so that Neotel would never become an effective competitor) and formed BI into a stand alone company. People also correctly predicted from the start that BI would never survive or thrive.

 

[bekdik]

The government promised to give BI's network to Neotel when the first became the SNO. The government later backtracked (some say it was Telkom's influence - so that Neotel would never become an effective competitor) and formed BI into a stand alone company. People also correctly predicted from the start that BI would never survive or thrive.

And, as I recall, Neotel was a forced marriage when the tenders of the big international players such as Sprint, BT were turned down leaving a backstreet garage owner as one of the possible incumbents.

 

[Thor]

They write this Article title as if Telkom is NOT a monopoly.

 

[Paul Hjul]

They write this Article title as if Telkom is NOT a monopoly.

Telkom is not a monopoly and in recent years isn't really a monopolist in outlook either. There are certain services and sections of the market in which Telkom is the sole operator or provider and a failure to engage in facilities leasing would be a monopolistic act. The article is a cut and paste report job of an article appearing in Rapport - presumably to bridge the language divide.

What isn't being covered in the article is where the proposal is coming from. The narrative being spun is in the framework of Telkom acquiring Infraco rather than government thrusting Infraco upon Telkom to create a monopoly position in various markets.

 

[ngwenyas]

Who cares about fixed when LTE-A is on it's way?

 

[Thor]

Who cares about fixed when LTE-A is on it's way?

Because you can't afford it