Telkom sells fixed lines below cost

You're drunk you silly old fool

Seven Drunken Nights

As I went home on Monday night as drunk as drunk could be
I saw a horse outside the door where my old horse should be
Well, I called me wife and I said to her: Will you kindly tell to me
Who owns that horse outside the door where my old horse should be?

Ah, you're drunk,
you're drunk you silly old fool,
still you can not see
That's a lovely sow that me mother sent to me
Well, it's many a day I've travelled a hundred miles or more
But a saddle on a sow sure I never saw before

etc...
 
Isn't hardware normally an expense? They are still making profit. The only thing that everybody is complaining about is that you you HAVE TO get the voice service when you get ADSL. Don't most people use a land line phone anyway?

Naked ADSL is necessary because we have people who really, really need internet, but cannot afford it, because Telkom seems to have spent themselves into a corner. I'm talking about students and the less privileged for whom it is not an option to spend R500 a month for 384kbps internet.

Of course nobody at Telkom (or their politically minded owners) will ever acknowledge that they are holding the the country back through their cozy little monopoly.
 
Telkom's whole "argument" makes no bloody sense anyway. The only reason data could cost more than voice is due to DSLAMs, but those are sunk costs anyway that should not factor into the cost to consumers!

But remember, this is a company run by dumb c**ts who buy MultiLinks for R2.8bn, lose an additional R5bn over the course of its operations, and sell it for R350m two years later. If Telkom's statements about line subsidies aren't blatant lies, that R7bn could have covered their subsidiary costs for YEARS and they could have passed savings down to consumers, thus growing their subscriber base.

I didn't even take Economics 101 and I know more about customer management better than Telkom's CEOs. Isn't that pathetic?
 
Telkom knows that once LLU is in full effect, there will be a mass exodus of customers who will flock to smaller players who will be more than able to provide better customer service.
Telkom will be reduced to a faceless entity that will have no choice but to sell bandwidth wholesale to smaller players.
 
Okinawaiso said:
Telkom knows that once LLU is in full effect, there will be a mass exodus of customers who will flock to smaller players who will be more than able to provide better customer service.
Telkom will be reduced to a faceless entity that will have no choice but to sell bandwidth wholesale to smaller players.
Click to expand...

Oh yes! I can't wait for this to happen!
 
Don't believe everything Telkom says but this may well be true for new lines... They make so much money on voice calls the lines pay themselves back in no time.. No time at all...
 
What I don't understand is why telkom is holding on to the local loop if the are losing money on it? Sounds like bs to me.

Sent from my GT-I9000 using MyBroadband Android App
 
Shayd said:
What I don't understand is why telkom is holding on to the local loop if the are losing money on it? Sounds like bs to me.
Click to expand...

+1 ... if its costing them money .. they get rid of it and make it someone else's problem ... but we all know they full of it ... there is no way they would ever lose money on anything ... what they probably mean by losing money is that they only making 100% profit as opposed to their usual 300%+
 
lucifir said:
+1 ... if its costing them money .. they get rid of it and make it someone else's problem ... but we all know they full of it ... there is no way they would ever lose money on anything ... what they probably mean by losing money is that they only making 100% profit as opposed to their usual 300%+
Click to expand...
The voice revenue generated on those cables is used to cross-subsidise the losses they incur on the actual provision of the cables.
 
MickeyD said:
If it was so profitable to provide the cables then why don't all the network operators build their own last mile networks?
Click to expand...
Problem is, initial cost of laying/trenching. It needs years to compensate all initial investments, before it can start earning profits.
 
Telkom competition

MickeyD said:
If it was so profitable to provide the cables then why don't all the network operators build their own last mile networks?
Click to expand...

It is about economies of scale and return on investment, it will take a long time to get a network in the ground and why do it if LLU is on the cards? Actually operators ARE putting cable down, but remember you first need to get a core and distribution network set up before you can do access. I am sure Vodacom/MTN/Cell C etc. will start offering fibre to businesses and maybe later to residential customers once they have finished getting big fibre pipes to all their towers. It is the next logical step, the towers will effectively be the exchanges. Then remember the guys doing FTTH in Durban, many gated communities, buildings in cities and so forth. It will just take time which is super frustrating.
 
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