Telkom will inject R40bn into its network

Like many firms, Telkom is harmed by the economic downturn, with revenue remaining flat while costs rise.
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Wasn't it pointed out previously that Telkom's prices contributed at least 1% to inflation? So indirectly, Telkom caused their suppliers to charge more, because Telkom charge so much for their services. Telkom is harmed, because they act like a monopoly when they should have acted like any other competing company.
 
The company is reinventing itself after selling its stake in Vodacom, which was its biggest contributor to profit.
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I don't have a MBA or a corner office in some ivory tower but I just don't get the above. I can see how it would work for certain share holders but not for the company.
 
this should have been done long time ago and been ready for seacom and other cables and then the 8mb line would have worked as well , and they will have not back haul problem.
 
Telkom hijacked our infrastructure. They should build their own network and someone else should manage our infrastructure with goverment funding.
 
R40 billion! What, are they turfing everything and starting again?

Might not be such a bad idea.
 
Don't forget that government still owns 38% of telkom.


Tweak said:
Telkom hijacked our infrastructure. They should build their own network and someone else should manage our infrastructure with goverment funding.
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Telkom expected to invest about R40 billion in the next five years to upgrade its network in South Africa as part of its survival strategy in an increasingly competitive environment, the fixed-line operator said yesterday.
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Has Telkodemonopolies not been advertising on TV that its NGN will be ready for both 2010 and customers [the kids stuck in the bandwidth pipe]?

Now the monopolistic beast says it will need another 5 years and the implication is that Telkodemonopolies' NGN will not be completed in time for 2010...:rolleyes:
 
ic said:
http://mybroadband.co.za/news/Business/7568.htmlHas Telkodemonopolies not been advertising on TV that its NGN will be ready for both 2010 and customers [the kids stuck in the bandwidth pipe]?

Now the monopolistic beast says it will need another 5 years and the implication is that Telkodemonopolies' NGN will not be completed in time for 2010...:rolleyes:
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That's what I don't get. They've been banging on about their "NGN" for around 8 years now, and now we find out that they need a "NNGN" and the current NGN they built can't even supply enough bandwidth to cellphone towers. What a typical Telkom joke :rolleyes:
 
How much of the R40 billion will actually find its way into upgrading the network and how much of it will go towards bribes, corruption pay-offs and paying inflated prices for having to deal with 'fronts' just to satisfy stupid BEE requirements? Should Telkom not rather buy their network requirements from other network operators in the country and rather sell off what network facilities they have left?
 
Netguy said:
How much of the R40 billion will actually find its way into upgrading the network and how much of it will go towards bribes, corruption pay-offs and paying inflated prices for having to deal with 'fronts' just to satisfy stupid BEE requirements?

Should Telkom not rather buy their network requirements from other network operators in the country and rather sell off what network facilities they have left?
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Telkom does buy equipment directly from manufacturers that have a physical presence in the country, ala Siemens, Cisco etc

And who exactly would the "other network operators" be? I think you have the cat by the tail here. No one in this country has network infrastructure that even comes close to 10% of what Telkom has. Everyone at some point in their network is reliable on Telkom for service of some sort.
 
DblD said:
10 years too late...
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Perhaps even more than 10 years.
They should've done this prior to their being any competition and actually earning respect from their customers instead of screwing them for everything they had and now trying to create a working network, purely because their profit is going to fall.
 
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