Telkom owe us Big time

[Pumba]

From http://www.finance24.co.za/Finance/Companies/0,,1518-24_1436738,00.html

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote">
South African telecommunications utility Telkom (TKG) on Tuesday revealed that it expects both earnings per share and headline earnings per share for the six month period ending 30 September 2003 to be substantially above earnings per share and headline earnings per share for the 6 month period ended 30 September 2002. In terms of the JSE Listings Requirements, "substantially" is defined as an increase or decrease of more than 30%.

Telkom is currently finalising its results for the 6 month period ending 30 September 2003, which are expected to be released on 24 November 2003.

The group listed on the Johannesburg and New York Stock exchanges in March this year. Ends



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And from http://www.businessday.co.za/bday/content/direct/1,3523,1469071-6094-0,00.html

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote">
Rand and cost-cutting boost Telkom earnings
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It is widely accepted that the appreciation of the Rand contributed (amongst others) to this higer earnings.

Now, when ADSL was implimented in Sept 2002, the Rand was somewhere in the R13/$ region. This obviously played a role in the pricing and to the argument that bandwidth is expensive.

Now the Rand is at R7/$ levels so the expensive bandwidth is now a lot cheaper. In stead of passing this onto the customer (maybe in the form of raising the cap to say 5G), no, Telkom takes the benifit for itself.

 

[VQuest]

Very good point Pumba.

It would be good business policy to pass at least some of this onto their customers. But Telkom has proved over and over that they are not customer oriented. Why worry about us being ripped off when the Telkom fat cats can line their pockets even more.


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United we stand!
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[rpm]

Hi Pumba

Good point indeed. I see that Telkom’s price for the Marconi modem dropped substantially, but it is still exorbitant in comparison to other prices. Does anybody have a price for Marconi modems internationally? I could not find anybody that sells them.

Regards,

RPM
[email protected]

 

[Pumba]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote"><i>Originally posted by rpm</i>
<br /> Does anybody have a price for Marconi modems internationally? I could not find anybody that sells them.

Regards,

RPM
[email protected]
<hr height="1" noshade id="quote"></blockquote id="quote"></font id="quote">

I spoke to a buddy in Holland. None of their sites have Marconi Modems neither has he ever heard about it.

 

[onionpeel]

I am not entirely convinced of the exchange rate story.
When these kinds of contracts are concluded, tariffs are agreed on for a period of time, say 1 year, after which the tariff is reviewed in light of the changing environment.
Does Telkom pay for their international bandwidth in US$/Euro/Rand? This could determine whether it can get cheaper. Inter operator Rand tariff would mean there is no benefit for us even if the exchange rate drops. A US$ tariff would make a difference as our Rand to Dollar conversion would become more favourable.
Anyway, it is quite possible that the tariff(s) came up for review recently and that Telkom said we will just make more profit. Which then backs up my theory of why things don't come down in price, they just don't go up as much as before.

 

[Jerrek]

One thing is for sure.... Telkom kicks AT&T's ass when it comes to profitability.

 

[VQuest]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote"><i>Originally posted by Jerrek</i>
<br />One thing is for sure.... Telkom kicks AT&T's ass when it comes to profitability.
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Thats only due to the fact that Telkom rips their customers off.


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United we stand!
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[microfast]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote"><i>Originally posted by Jerrek</i>
<br />One thing is for sure.... Telkom kicks AT&T's ass when it comes to profitability.<hr height="1" noshade id="quote"></blockquote id="quote"></font id="quote">

There is a big moral issue here.

America allows african governments to form monopolies
and then allows these monopolies to list on the US stock
exchange as private companies. Is this legal in US ??

I think not - The US is very strict on monopolies.

International investors profit on african monopolies.

I think Telkom should be kicked off the NYSE.

 

[ASnogarD]

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica" id="quote">quote:<hr height="1" noshade id="quote"><i>Originally posted by onionpeel</i>
<br />I am not entirely convinced of the exchange rate story.
When these kinds of contracts are concluded, tariffs are agreed on for a period of time, say 1 year, after which the tariff is reviewed in light of the changing environment.
Does Telkom pay for their international bandwidth in US$/Euro/Rand? This could determine whether it can get cheaper. Inter operator Rand tariff would mean there is no benefit for us even if the exchange rate drops. A US$ tariff would make a difference as our Rand to Dollar conversion would become more favourable.
Anyway, it is quite possible that the tariff(s) came up for review recently and that Telkom said we will just make more profit. Which then backs up my theory of why things don't come down in price, they just don't go up as much as before.
<hr height="1" noshade id="quote"></blockquote id="quote"></font id="quote">

Agreed, but no-one expected such a raise in the R , thus it would be fair to pass some of the benefits to the consumer. But then again it holds true that many forex gains are never translated to consumer benefit , but forex loss is ALWAYS felt by the consumer, petrol is a excellent example of this in action. Telkom is not the only company that fails to pass benefits along, and to make the consumer pay when there is a loss.