Telkom won’t die: CEO

Won't die but will become more and more of a adopted child of the country requiring continuous bale outs and financial assistance.
 
Just like cockroaches, they will probably survive the apocalypse.
 
I beg to differ from the CEO. If I look at the number of minutes I use and compare it to my telkom account (which includes line rent) I realise that it can be done much cheaper over my cell phone.

The only reason why we are still tolerating telkom phones is the monopoly they have over ADSL lines.

As mobile data becomes more affordable and the quality in my area improves - it will be "die telkom die!"
 
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Hemi300c said:
Won't die but will become more and more of a adopted child of the country requiring continuous bale outs and financial assistance.
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Telkom has never received any bail outs or financial assistance. On the contrary Telkom has been the bail outer to its detriment.
 
The math is actually very simple:
If Telkom manages to become an efficient player in the communications sector that offer quality converged service products to customers (enterprise and consumer) and properly priced wholesale products to service providers the company will be sustained on its wholesale products and profitable on its services.

If Telkom continues to fail to become such a player (which until it adopts LLU as an integral part of its future it is destined to) then it will eventually burn. Unfortunately though it is looking increasingly like Telkom is in the hands of a consulting firm that is bringing the "original idea" to the table of flobbing off staff and acquiring sections of the market - both of which are true but neither should be paid for.
 
They should encourage competition, not cling onto their monopoly. Monopolies stagnate not only to the detriment of their (captured) consumers, but also themselves. By the time they realise that their business model is outdated, it is too late to innovate. The whole country is migrating towards mobile, wifi and FTTx and Telkom is still struggling to provide proper ADSL to large urban areas. One day they will wake up and realise no one needs them anymore.
 
Maseko appears to be working to a strategy. I agree with Paul this is consultant-scripted, but there are plenty of fixed-incumbent turnarounds to draw lessons from. He is not responsible for the past and I sincerely hope he succeeds in making Telkom relevant and profitable.
 
CEO speak with forked tongue ... the bargaining unit WILL be affected, to the tune of up to 6000 retrenchments over the next 4 years. And then the unions will be very involved!
 
and these retrenchments are leading to a loss of skills from the industry rather than migration from one firm to another.

- and again if Telkom took the initiative to unbundle the local loop in 2011 there would be staff absorptions in the sector
 
Mr Maseko needs to accelerate not prolong the MSAN/ISAM project and add vectoring to the same then 90 meg will be available in most places where DSL is available .
This is a matter of urgency for that company .

Talk is cheap and money buys whisky , awe-full lot of talking going on instead of doing.

http://www.alcatel-lucent.com/products/7330-isam-fttn-etsi
 
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I am not sure why Telkom is spending its available capital on buying non-core businesses? I mean what value would the buy create? Nothing - it just moves value around.

Telkom should rather spend its capital on its core operations and if its shareholders want to invest in other business they can buy the shares themselves.
 
Paul Hjul said:
The math is actually very simple:
If Telkom manages to become an efficient player in the communications sector that offer quality converged service products to customers (enterprise and consumer) and properly priced wholesale products to service providers the company will be sustained on its wholesale products and profitable on its services.
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And to re-visit an earlier article regarding LLU and a win-win situation for Telkom, I fully agreed with ICASA on the following and the viability of LLU for Telkom's business, sustainability and future relevance in the telecommunications sector.

LLU should not cause financial harm

Elsewhere in the explanatory note, Icasa said that there is no intention that any licensee providing network access should suffer any financial harm due to LLU.

“In terms of access to any form of local loop (fixed line copper, fixed line fibre, and/or wireless access), the network owner has the right to set the price to ensure future sustainability of their own private network services and future investment commitments,” Icasa said.

The licensee seeking access on another’s network has to pay their own capital costs for setting up their access to the local loop and any associated usage fees.

“However, should the access seeker consider that the price charged is unreasonable, they may dispute these charges before the Authority,” Icasa said
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http://mybroadband.co.za/news/gover...ms-access-line-deficit-icasa-unconvinced.html

Honestly I'd like to hear/read a counter argument to the above.
 
^ the whole Line Access Deficit argument is misplaced. Telkom need to get their costing mechanisms correct for wholesale and have simply failed to do so. What we need right now is for a team of Telkom employees to be charged with structuring wholesale costing on DSL supporting infrastructure and you have LLU right there.
 
Paul Hjul said:
^ the whole Line Access Deficit argument is misplaced. Telkom need to get their costing mechanisms correct for wholesale and have simply failed to do so. What we need right now is for a team of Telkom employees to be charged with structuring wholesale costing on DSL supporting infrastructure and you have LLU right there.
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Already in place...
 
Johand said:
I am not sure why Telkom is spending its available capital on buying non-core businesses? I mean what value would the buy create? Nothing - it just moves value around.

Telkom should rather spend its capital on its core operations and if its shareholders want to invest in other business they can buy the shares themselves.
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Do they know what the core is?
 
Bosvark@ said:
No bailouts yet - but every year they getting closer...
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Don't see government bailing Telkom, Telkom are not too big too fail and state only owns 39% of Telkom, the only solution for Telkon is to be fully privatized this will happen, maybe not during Zuma term of government.
 
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