http://www.fin24.co.za/articles/default/display_article.asp?Nav=ns&ArticleID=1518-24_1834153
Nov 14 2005 05:21:20:617PM
By: Allan Seccombe
Johannesburg - Telkom customers are in for a treat. The telecommunications monopoly finally realises that the customer is king.
Telkom CEO Papi Molotsane used the words "delight", "customer" and "service" in one sentence to describe the much-criticised fixed-line operator's strategy for seeing off any threat to its business when the second fixed-line operator begins operations.
This is sure to come as a bit of an eyebrow raiser to those who have experienced Telkom's dismal track record in customer care.
While Molotsane says one of the major gripes will be attended to, the other, Telkom's high prices, might be less easy to adjust, despite the increase in competition.
One area where Telkom has drawn vitriolic criticism is its recent ADSL or broadband, pricing structure decision, which consumer group MyADSL reckons will make the service 1 000% more expensive than similar services elsewhere in the world.
ADSL is a technology that gives businesses and homes faster access to the internet on existing phone lines.
It is more geared towards receiving information than sending it, making it an ideal tool to exploit massive amounts of information.
"I know there are complaints along these lines. I've asked my service and marketing people to engage MyADSL and understand exactly what the issues are," Molotsane told Fin24 after the listed company's interim results presentation.
The meeting is expected to be held on Tuesday.
"I'm going to ask both players - ourselves and our customers - to sit down, voice opinions and issues and find the best way forward. We might not agree on everything, but let's engage and understand where each one of us comes from."
Asked whether the decision, which caps the amount of data users may receive, might be reversed or amended, Molotsane said he was sure the team that implemented the decision had sound reasons for doing so.
"If it means a decision has to be re-looked at, ja, we'll have to look at it, but I must believe there is a solid reason why our people have done it," he said.
Telkom has argued that its structure will allow internet service providers, which act as retailers of ASDL, to reduce the cost of providing the technology by up to 50%.
Given the tensions in this particular arena, it is difficult to see how Telkom is going to achieve its aim of growing market penetration of ADSL from two percent to between 15 and 20% in three years as Molotsane said during his presentation.
One of the plans to speed up ADSL rollout is for part of the ADSL installation process to be done by customers. Contractors will also be hired to help deal with the backlog.
A telecom analyst from JP Morgan questioned whether Telkom management was being all that smart looking at other African opportunities, particularly in Nigeria, when it was facing stiffer competition for its domestic market and tougher regulatory requirements.
Molotsane said Telkom had a deep pool of talented managers that were chomping at the bit to get into the rest of Africa.
The analyst also asked whether the money that could potentially be spent in Nigeria or elsewhere wouldn't be better served paying dividends to shareholders or share buybacks.
Molotsane said if the investment opportunity in Nigeria or elsewhere in Africa did not add value for shareholders it would be disregarded.
The introduction of the second national operator (SNO) is expected to reduce Telkom's market share by up to 15% in five years, Molotsane said, adding management had a five-pronged strategy focused strongly on customer satisfaction in warding off any threat to its business.
"We have to focus more on our customers. We have to ensure that every interaction with our employees is a delightful experience," he said.
Given that Telkom has put more than 6 000 people out of work in the past year, reducing its workforce to 25 600, morale must have taken a dent as it does in any organisation where job numbers are being cut.
Making Telkom workers the light and joy in a customer's life is going to be difficult.
"Innovation, customer service, all these things we expect to delight our customers will not happen unless we engage our employees and make sure they are properly skilled, they are well compensated and that they are excited about working for this organisation," he said.
Edited by Adrienne Taylor
Nov 14 2005 05:21:20:617PM
By: Allan Seccombe
Johannesburg - Telkom customers are in for a treat. The telecommunications monopoly finally realises that the customer is king.
Telkom CEO Papi Molotsane used the words "delight", "customer" and "service" in one sentence to describe the much-criticised fixed-line operator's strategy for seeing off any threat to its business when the second fixed-line operator begins operations.
This is sure to come as a bit of an eyebrow raiser to those who have experienced Telkom's dismal track record in customer care.
While Molotsane says one of the major gripes will be attended to, the other, Telkom's high prices, might be less easy to adjust, despite the increase in competition.
One area where Telkom has drawn vitriolic criticism is its recent ADSL or broadband, pricing structure decision, which consumer group MyADSL reckons will make the service 1 000% more expensive than similar services elsewhere in the world.
ADSL is a technology that gives businesses and homes faster access to the internet on existing phone lines.
It is more geared towards receiving information than sending it, making it an ideal tool to exploit massive amounts of information.
"I know there are complaints along these lines. I've asked my service and marketing people to engage MyADSL and understand exactly what the issues are," Molotsane told Fin24 after the listed company's interim results presentation.
The meeting is expected to be held on Tuesday.
"I'm going to ask both players - ourselves and our customers - to sit down, voice opinions and issues and find the best way forward. We might not agree on everything, but let's engage and understand where each one of us comes from."
Asked whether the decision, which caps the amount of data users may receive, might be reversed or amended, Molotsane said he was sure the team that implemented the decision had sound reasons for doing so.
"If it means a decision has to be re-looked at, ja, we'll have to look at it, but I must believe there is a solid reason why our people have done it," he said.
Telkom has argued that its structure will allow internet service providers, which act as retailers of ASDL, to reduce the cost of providing the technology by up to 50%.
Given the tensions in this particular arena, it is difficult to see how Telkom is going to achieve its aim of growing market penetration of ADSL from two percent to between 15 and 20% in three years as Molotsane said during his presentation.
One of the plans to speed up ADSL rollout is for part of the ADSL installation process to be done by customers. Contractors will also be hired to help deal with the backlog.
A telecom analyst from JP Morgan questioned whether Telkom management was being all that smart looking at other African opportunities, particularly in Nigeria, when it was facing stiffer competition for its domestic market and tougher regulatory requirements.
Molotsane said Telkom had a deep pool of talented managers that were chomping at the bit to get into the rest of Africa.
The analyst also asked whether the money that could potentially be spent in Nigeria or elsewhere wouldn't be better served paying dividends to shareholders or share buybacks.
Molotsane said if the investment opportunity in Nigeria or elsewhere in Africa did not add value for shareholders it would be disregarded.
The introduction of the second national operator (SNO) is expected to reduce Telkom's market share by up to 15% in five years, Molotsane said, adding management had a five-pronged strategy focused strongly on customer satisfaction in warding off any threat to its business.
"We have to focus more on our customers. We have to ensure that every interaction with our employees is a delightful experience," he said.
Given that Telkom has put more than 6 000 people out of work in the past year, reducing its workforce to 25 600, morale must have taken a dent as it does in any organisation where job numbers are being cut.
Making Telkom workers the light and joy in a customer's life is going to be difficult.
"Innovation, customer service, all these things we expect to delight our customers will not happen unless we engage our employees and make sure they are properly skilled, they are well compensated and that they are excited about working for this organisation," he said.
Edited by Adrienne Taylor
one can only but laugh at his comments
