Telkom is in deep trouble, according to analysts

So that's why they keep on billing me despite having cancelled my subscription, twice.
 
Telkom CEO remains upbeat

Despite this sentiment, Telkom CEO Sipho Maseko remains bullish about the company, saying that its turnaround is on track.

Maseko said they are looking to grow the business through both organic options and suitable acquisitions.
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If the CEO weren't feeling good about the company it would be time to get a new one.
 
I have to agree. Telkom service is still very bad. As I am typing this I am on the line with the call center and I have been waiting for 21 minutes now. Telkom also cannot provide me with a line at my home in Pretoria.

Now that everybody is rolling out fibre Telkom will soon become a failed bad company.
 
Telkom is not the only company in deep deep trouble. What about Eksdom?
 
the basic tenant of the by McCurrie analysis is simply wrong so the McCurrie is being a moron
the main reason for Telkom's existence is not voice minutes and thinking that it is has been part of a series of government lead stupidity acts at the company

the issue is whether Telkom can make up the declining revenues of voice minutes
 
Koosi said:
Telkom is not the only company in deep deep trouble. What about Eksdom?
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We are forced to pay eksdom and eksdom is dragging the whole country down with it. They will plug their holes with our money and will recover in time. I just hope the process will not repeat itself in the future.
 
The demise of the Post Office will precede the demise of Telkom which might take a bit longer.

Without massive financial support SAPO will be out of business within a year to eighteen months.
 
Paul Hjul said:
the basic tenant of the by McCurrie analysis is simply wrong so the McCurrie is being a moron
the main reason for Telkom's existence is not voice minutes and thinking that it is has been part of a series of government lead stupidity acts at the company

the issue is whether Telkom can make up the declining revenues of voice minutes
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^ This

... maybe McCurrie can enlighten us as to countries where fixed line voice minutes are increasing?
 
The question is more long the lines of: Which big companies in South Africa with long histories are not in "trouble"?. The mining houses are. Retail are. Aviation. Etc. Etc.
 
MickZA said:
^ This

... maybe McCurrie can enlighten us as to countries where fixed line voice minutes are increasing?
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not going to happen as any country where there is an across the board increase in fixed voice line minutes is not a poster child for a thriving telecos market ...
one could evaluate two fixed line operations and comment that one is in trouble because its loosing market share in fixed line revenue
or say that a purely fixed line voice entity is in deep trouble because of it being in a diminishing business

BUT this sort of misstepped analysis is peculiarly tenacious at being spouted. Interestingly the article contains the one myth (teleco's are about voice revenue) while specifically distancing itself from another (you can "fix" diminishing returns by slashing your human capital)

Of course I did say McCurrie is being a moron which is very naughty in these parts, but fortunately I highly doubt McCurrie is a moderator or baby on this forum

Of course the
 
Wasn't Wayne McCurrie the analyst who said Cell C was going to go belly up in 12 months? Wasn't that a few years ago?

I think Telkom have their share of issues and I'm not sure I would buy any of their shares right now, but if they are smart enough to retrench most of the dead wood, and they slowly dump most of their old copper infrastructure I think in time they will probably do well.
 
elp said:
Wasn't Wayne McCurrie the analyst who said Cell C was going to go belly up in 12 months? Wasn't that a few years ago?

I think Telkom have their share of issues and I'm not sure I would buy any of their shares right now, but if they are smart enough to retrench most of the dead wood, and they slowly dump most of their old copper infrastructure I think in time they will probably do well.
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He might have said so but he isn't the analyst who did so famously, that was Paul Theron:
http://mybroadband.co.za/news/cellular/84719-cell-c-will-be-dead-within-6-months-analyst.html
 
speaking of the CellC will be dead prediction:
I was spot on when I said:
it strikes me as a silly prediction. I think CellC is is *** and there sustainability prospects are bad. TM will overtake them as the the TMNO (Third Mobile Network Operator) and the future of low priced data rests with the ISPs so CellC simply needs to carve itself a sensible spot in 4th place as an MNO as well as as an ISP and find a few niche spots to fill. I disagree with the premise that there is only room for 3 operators in SA because it fundamentally merges operators and service providers into one mess. There is a lot of room for multiple service providers and there is also room for several interconnected network operators where things get messy is how many large scale brands for communications products there are. Anyway my prediction is that if CellC gets a continuance on asymmetric termination rates in 6 months they will still be about as they currently are and maybe a bit stronger if not 6 months down the line the talk will be of CellC being in trouble but its still a long way to "dead".
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There are VMNOs using CellC (FNB and that other one) and as ITWeb reports Telkom and CellC have switched places
 
lcbxx said:
The question is more long the lines of: Which big companies in South Africa with long histories are not in "trouble"?. The mining houses are. Retail are. Aviation. Etc. Etc.
Click to expand...

At least some of those can blame the world economic climate while Telkom are in trouble because they have been hamstrung by the government and prevented from operating as a proper business forever. Add the fact that they are not really expanding their fixed line offering any more. I asked them to install a line and they refused to pull a line from downstairs up to my unit because that needed to be done by some planning something something. And it's not like there were no lines in my area.
 
They were so used to having 99.9% of the cake that they got fat and lazy. Everyone else is loving the telkom cake.
Fibre Companies, DFA, WISPS, Neotel and the Cellphone operators.

I am sure that most customers are so fed up with telkom excuses that they will jump ship of a similarly priced aternative exist.
 
znh said:
They were so used to having 99.9% of the cake that they got fat and lazy. Everyone else is loving the telkom cake.
Fibre Companies, DFA, WISPS, Neotel and the Cellphone operators.

I am sure that most customers are so fed up with telkom excuses that they will jump ship of a similarly priced aternative exist.
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There's research that says otherwise.

I posted some analysis on Telkom's revenue in the financial results thread. This moegoe needs to put some time frames to his predictions... short term? No. Medium term, maybe. Long term? Yes, if they don't respond now. Which is what they have been doing for the last few years.
 
MickeyD said:
There's research that says otherwise.

I posted some analysis on Telkom's revenue in the financial results thread. This moegoe needs to put some time frames to his predictions... short term? No. Medium term, maybe. Long term? Yes, if they don't respond now. Which is what they have been doing for the last few years.
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don't let facts get in the way of the anti-Telkom narrative ...
 
I also commented on the graph in the article, which is not necessarily a bad thing when you analyze the lost lines.
 
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