deweyzeph

Executive Member
Joined
Apr 17, 2009
Messages
8,773
The best thing the government can do is stay the hell away from the technology and communications sector. The less they get involved the better. Everything they touch turns to crap.
 

MickZA

Executive Member
Joined
Jan 19, 2007
Messages
7,575
Telkom said it welcomes the announcement of the government’s decision to appoint the company as South Africa’s national broadband champion.
:confused: Who the hell else could they have appointed that would be interested?
 

Nod

Executive Member
Joined
Jul 22, 2005
Messages
9,689
Why not give some kind of incentive to companies that contribute to their broadband plan?
This will allow private companies to plan their strategies around the added benefit of also getting something from government, be it tax breaks, or whatever.
 

Fuzzbox

Expert Member
Joined
Jun 10, 2009
Messages
1,267
Are they not selling TELKOM to fund ESCOM.
As usual the left hand does not know what the right hand is doing.
 

Paul_S

Expert Member
Joined
Jun 4, 2006
Messages
4,952
The government have been trying for years to get Telkom to invest in under serviced areas and it has been a failure so far.
In order to provide fixed line access to remote areas it needs to be commercially viable. That is something the ANC are incapable of understanding.
 

The_MAC

Executive Member
Joined
Oct 11, 2012
Messages
6,089
The government have been trying for years to get Telkom to invest in under serviced areas and it has been a failure so far.
In order to provide fixed line access to remote areas it needs to be commercially viable. That is something the ANC are incapable of understanding.

Thats exactly the point. Unlike Government who can just shrug their shoulders should an idea flop and Millions go wasted, Telkom has to actually keep its shareholders happy and that requires it to be profitable.

Zuma wants to use it as a tool to address governments lack of initiative to get those rural areas connected, which by the way will cost Billions, which Telkom does not have
 

zek 2371

Well-Known Member
Joined
Jun 3, 2008
Messages
101
So where's the money going to come from? When Telkom sells their towers and then lease it back? Don't think that will be nearly enough.
 

Chevron

Serial breaker of phones
Joined
Oct 2, 2007
Messages
25,901
Would be better if the government was funding Telkom. Like in Australia the government is funding the Fibre rollout to rural areas.
 

deweyzeph

Executive Member
Joined
Apr 17, 2009
Messages
8,773
Would be better if the government was funding Telkom. Like in Australia the government is funding the Fibre rollout to rural areas.

Do you really want the government to own something as important as a communications network? The more the government funds something the more they can use or misuse it for their own purposes.
 

Sneeky

Honorary Master
Joined
May 5, 2004
Messages
11,607
I honestly think it is this exact lack of leadership, planning and understanding that exhibits itself here, that is exactly responsible for why we are in the situation we find ourselves in today with Eskom. The same decisions were made in 2000 regarding spending on building extra generating capacity based on (accurate) projections.

In another 10 or so years with Telecoms, when the horse has bolted and miles ahead, it will be hugely more expensive and almost to costly to rein it all in.

Now well Gov doesnt hold the majority share on paper any longer, they still pull the strings.


A day after broadband and connectivity trended in Parliament for all the wrong reasons; Telkom CEO Sipho Maseko set the record straight to City Press about government’s plans to roll out broadband.

In the state of the nation on Thursday night, President Jacob Zuma said that government had “decided to designate Telkom as the lead agency to assist with (the) broadband roll out”.

This has prompted some questions around what this will mean for private Telkom investors after news agency Bloomberg quoted Telecommunications Minister Siyabonga Cwele saying that “the rollout of broadband is quite a costly exercise. Telkom has got its own balance sheet which can meet some of this demand”.

Some took this to mean that Telkom may have to provide cash from its own coffers for the government project.

The fixed-line operator has been working on a turnaround strategy to plug some of its financial holes, including retrenching staff, as it struggles with declining fixed-line usage.

But Maseko said that the government will be a client, even though it is Telkom’s largest shareholder with a 39% stake and the Public Investment Corporation holding another 10%.

“I think that things may have been lost in translation here: government is the client and Telkom is the implementing or executing agency so government will fund all of it,” said Maseko in a phone interview with City Press on Friday.

He said government representatives perhaps meant that they would use Telkom’s existing infrastructure instead building a new network, and “when resources are constrained it is a sensible approach,” he said.

“What we need to do now is sit down with government and have proper commercial agreements because what we had was a headline,” he said.

“We need to discuss what type of infrastructure they want and what it will cost, etc. But ultimately they are the client and we are the provider. What we will try to do is optimise their resources as best as possible and [find] what is the best solution.”

He said this will not interfere with Telkom’s plans and strategy to service customers with high speed broadband.

But he said investors should be happy about this development.

“Government is a big and important client and our investors should be happy that we are demonstrating an ability to secure and support this project going forward on commercial terms.”

He also responded to speculative media reports that Telkom was up for sale and that MTN was considering buying it.

He said although the news that MTN wanted to buy it was “encouraging” he is not aware of anything like that and that Telkom was not for sale.
http://www.citypress.co.za/business/telkom-boss-clarifies-zumas-comments-broadband/

Lets use existing infrastructure forever, its just awesome as it is.
 
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