Telkom Mobile will never be profitable: analyst

jes said:
Telkom Mobile will never be profitable: analyst

Analyst says that Tekom Mobile and Cell C will have to increase their prices if they would like to survive
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Something is amiss... SA has some of the most expensive data in the world? Prices must come down! MTN and Vodacom are making Billions. I think it was on mybroadband that I read that it costs the Service Providers about R6/GB and they sell it to us for about R150? Is all this true? What about healthy competition? We need competition!
 
JohannesPaulsen said:
Something is amiss... SA has some of the most expensive data in the world? Prices must come down! MTN and Vodacom are making Billions. I think it was on mybroadband that I read that it costs the Service Providers about R6/GB and they sell it to us for about R150? Is all this true? What about healthy competition? We need competition!
Click to expand...

On my 8ta package I pay less than R10 per GB, so I can see the problem.
 
so even asymmetrical interconnect won't save TM and CC?
That's a crying shame since the only guys that have made any attempt to push down prices (no matter how self-serving the motivation behind it was) have been TM and CC.
If TM and CC were to crash and burn, I predict prices actually go up!
 
TM and Cell C should have merged.

Cell C has Frequency in the 900MHz, 1800MHz and 2100MHZ Bands
TM has Frequency in the 1800MHz, 2100MHz and 2300MHz Bands

Telkom has a great Fiber network and Cell C has a great 3G Coverage (Never mind the lack of backhaul).

Merge the two and you have good 3G & LTE
 
I beg to differ on this guys views.

Its easy for anyone to render an opinion like that"they will never succeed"

I quote the example of 3UK who was the last to enter the well established UK market and now have over 8 Million Customers and showing a great profit.

Telkom Mobile can achieve it however there are issues that may prevent this like having to take decisions.

Their 3G service is very good on Data and voice.

However South Africans are very brand orientated and are reluctant to change.

If only people knew how great change is.

With the call rates set to come down to 60c per minute I really cannot see any reason why people will not change.

MTN & VodaCom will never drop prices unless they are forced to.

Rightly so they make huge profits due to overcharging poor South Africans.
 
Hummercellc said:
TM and Cell C should have merged.

Cell C has Frequency in the 900MHz, 1800MHz and 2100MHZ Bands
TM has Frequency in the 1800MHz, 2100MHz and 2300MHz Bands

Telkom has a great Fiber network and Cell C has a great 3G Coverage (Never mind the lack of backhaul).

Merge the two and you have good 3G & LTE
Click to expand...

I was thinking along those lines by merging both into a single infrastructure company.

And kept their brands separate.
 
falcon786 said:
This is the reason why Cell C and Telkom mobile are taking so long to turn profitable IMO.....the only way to change this mentality and attract more customers is to compete on price.
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The way to really change mentality is to deactivate all SIMs in use and make it all start over again.
Then watch the fun!
Where's Anonymous when you need them!?
 
Very bold statement to make but don't agree entirely Telkom, can still make TM profitable, but to do that bold decision will have to be taken, i.e. cut head count and improve customer service to increase brand value, what I know Telkom need a Mobile arm and as such they'll do almost any and everything in their power to make it work, the rest is up to the State as Major shareholder and also ICASA coming to the party by making the playing field level.
 
Inevitability said:
The way to really change mentality is to deactivate all SIMs in use and make it all start over again.
Then watch the fun!
Where's Anonymous when you need them!?
Click to expand...

I see Cell C has realised that if you cant beat them then join them and is using Vodacom/MTN type marketing tactics with its new advertising featuring catchy tunes etc.....It is a proven method and has worked for Vodacom and MTN making their brands cool and entrenching them into peoples hearts even though the product itself is over priced and not that great.
 
I recall a analyst saying "cellc will be dead by the end of the year" in 2013. Here cell c is still going strong.

Here is the article
mybroadband.co.za/news/cellular/84719-cell-c-will-be-dead-within-6-months-analyst.html
 
JohannesPaulsen said:
Something is amiss... SA has some of the most expensive data in the world? Prices must come down! MTN and Vodacom are making Billions. I think it was on mybroadband that I read that it costs the Service Providers about R6/GB and they sell it to us for about R150? Is all this true? What about healthy competition? We need competition!
Click to expand...

Vodacom/MTN is not just making billions of SA call and data rates. It is all their other interests making money too
 
cr@zydude said:
On my 8ta package I pay less than R10 per GB, so I can see the problem.
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Yes, it's not low enough to drive people to their network.

There is such a mentality in SA that a company has to churn a profit right away. MTN and Vodacom practically did that with their high prices. Telkom is still paying off infrastructure roll-out and upgrades so they can't be expected to show a profit. We'll see what the picture looks like after 10 years which is the global norm for a return on investment. I really wish mybb will stop giving any media attention to these "analysts" which appear to actually be MTN and Vodacom cronies.
 
Die_Miek said:
I recall a analyst saying "cellc will be dead by the end of the year" in 2013. Here cell c is still going strong.

Here is the article
mybroadband.co.za/news/cellular/84719-cell-c-will-be-dead-within-6-months-analyst.html
Click to expand...

I hope he feels like an idiot!!
 
Die_Miek said:
I recall a analyst saying "cellc will be dead by the end of the year" in 2013. Here cell c is still going strong.

Here is the article
mybroadband.co.za/news/cellular/84719-cell-c-will-be-dead-within-6-months-analyst.html
Click to expand...

Well, they are almost bankrupt. His prediction seems correct, the timeframe was wrong
 
JStrike said:
Well, they are almost bankrupt. His prediction seems correct, the timeframe was wrong
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But myBB reported recently that Voda will lose R500m per 6 months due to asymmetrical interconnect.
Let's assume MTN loses the same per 6 months.
Assuming a 50/50 split between TM and CC means R500m to each of them per 6 months, or R1bn per year each ONLY from interconnect!! (more likely to be R1.5bn to CC and R500m to TM in the real world)
 
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Cell C and Telkom Mobile talked about merging but who would want to take on the Telkom corporate culture!

The difference between Cell C and MTN/VC is that Cell C has much lower spending customers who make fewer calls and spend less, purely because they came in later.

I think the Telkom share price bounce is most likely speculative, from people on the inside track of government behind-the-scenes talks about the future of Telkom. There's an outside chance the price could spike on any announcement (and then go down again over the longer term ...)
 
entrepr said:
Cell C and Telkom Mobile talked about merging but who would want to take on the Telkom corporate culture!

The difference between Cell C and MTN/VC is that Cell C has much lower spending customers who make fewer calls and spend less, purely because they came in later.

I think the Telkom share price bounce is most likely speculative, from people on the inside track of government behind-the-scenes talks about the future of Telkom. There's an outside chance the price could spike on any announcement (and then go down again over the longer term ...)
Click to expand...

The stock exchange is merely a money making machine without moving a muscle for the smart ones:)
So we know alot of telkom senior employees bought shares at R12 a pop and they will sell a year later when it goes to R40.
They then sell and take profits others are left with the short end of the stick :)
 
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