Telkom sells fixed lines below cost

thesuspect said:
If you remove emotion from LLU, it will probably be better to leave it status quo. That way Telkom can continue to invest in the access network, especially in new areas without cable, coz lets face it, LLU is still a hot topic becuase mobile data is not up to scratch and expensive, otherwise if it was better than fixed line, why would they bother?
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You want them to remain a monopoly? You cannot be serious.
 
More squirming from Telkom as they begin to lose their grip on the golden goose.
 
Telkom could make a lot of money by running Seminars and Training as well, and claim that money back from SETA! :D
These are the courses I think they would be best at....

1) How to lie with a straight face.
2) How to fiddle the economics to make something look more expensive.
3) How to play the martyr while enjoying preferential treatment.
4) How to ignore your competitors and do your own thing anyway.
5) How to bamboozle, confuzzle, frustrate, obfuscate, delay and thwart the implementation of mandated legislation.
6) Etc.

All the money that Telkom makes from these necessary South African Business Training Courses can be plowed back into the Line rental (or the CEO's Pockets - whichever is the greater need) ;)
 
As a listed company Telkom will have a strong case that it must be allowed to recover the cost
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Wrong. They may recover reasonable cost. If the costs are higher than that because their operation is inefficient (as monopolies tend to be) then that is their problem.

Even better, watch how fast these cost drop when Revenue (set by ICASA) - Cost doesn't leave enough for executive pay. That ladies & gents is how you fix problems like these. ;)
 
Ever factored cable theft into the equation?

Copper isn't cheap either.

The powers that be should equate cable theft with sabotage, and punish accordingly. Heavy.
 
Hopefully a fibre access company can take the plunge and risk selling fibre below cost....
Like cellc did...now everyone is following and that is good news for us.
I know they are rolling out fibre to homes in durban...

then telkom can die a slow death...
rip
 
evilstebunny said:
Telkom sounds like a fat pig squealing blue murder while it's made to run on a treadmill to shed some of that excess.
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I was thinking the same thing. This piggy went to the gym and is getting a workout.

Truth be told, this piggy is fat and is ready for slaughter.

All in all, they making long winded statements.
 
HavocXphere said:
Wrong. They may recover reasonable cost. If the costs are higher than that because their operation is inefficient (as monopolies tend to be) then that is their problem.

Even better, watch how fast these cost drop when Revenue (set by ICASA) - Cost doesn't leave enough for executive pay. That ladies & gents is how you fix problems like these. ;)
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Well Said ;)
 
Telkom, shut up already and give up your LLU fight. How do British Telecom in the UK provide BOTH voice and internet (20mbps) for just over R170 PER MONTH!!!

And please explain the Billions in profits you make even though you subsidize our lines???
 
Why do we automatically think that every bit of the Telkom network we use today was built prior to them going private? My house was built in 2000 and I got telephone lines installed in 2002. So Telkom used no tax money to build that part of their network. Above that, the majority of the DSL network built by Telkom was built after they went private, using no tax money to do so.

In fact, a good portion of today's internet users probably didn't even pay tax before Telkom went private.
 
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jacksback said:
Telkom, shut up already and give up your LLU fight. How do British Telecom in the UK provide BOTH voice and internet (20mbps) for just over R170 PER MONTH!!!

And please explain the Billions in profits you make even though you subsidize our lines???
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+1!!

I hope this talk of LLU means Telkom is finally losing control, lets hope this is not just all talk!!
 
Pity, doesn't look like Telkom has a viable business... Selling below cost. Who would have thought?? Sounds better to sell their infrastructure off!

Sent from my GT-I9000 using Tapatalk
 
inferno said:
Why do we automatically think that every bit of the Telkom network we use today was built prior to them going private?
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Who are "we"? I don't know anyone who thinks that. However, they certainly made good money from the infrastructure that was there. But most of that money was spent on paying out massive dividends and for throwing away on failed ventures. Not nearly enough has been spent on bringing down the cost of SA broadband.
 
I'd rather pay R250/R300 than the current R524.90 for ADSL access.
So LLU will reduce costs for us.
 
ajax said:
Ok, so how can they provide prepaid Waya-waya lines at R140 per year?
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if I play devil's advocate, prepaid users pay a surcharge of 60 cents per call.

I think it's outrageous that Telkom does that, but it's imporatnt to be accurate when arguing the case against them.
 
Again Telkom is think about them selfs. They need ot think about the people.

What will it take for them to listen to the peolpe that know what is going on.

Do not listen to your advisers they are always wrong :D
 
jacksback said:
How do British Telecom in the UK provide BOTH voice and internet (20mbps) for just over R170 PER MONTH!!!
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Amen to this. I refuse to believe that their cost per line is >R250 if the copper price and other similar costs are essentially the same internationally? Anyway, why should it cause us South Africans to get shafted so much harder? F*** that.
 
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