Telkom's copper network spin-off plans

Telkom must be the only fools in the world that makes a "loss" on a fixed installation of copper years ago. Now if they claim it's because of cable theft then I presume they have no insurance and then I ask why should I pay the penalty for it?

Sies Telkom julle bly moegoes!
 
Would like to see some big ISP's and owners of IECNS Licenses get together and buy this network as a consortium.
Then run it as a common resource.
 
Garyvdh said:
Would like to see some big ISP's and owners of IECNS Licenses get together and buy this network as a consortium.
Then run it as a common resource.
Click to expand...

I wonder who will be keen to invest his money in the fixed line business with this rampant copper cable theft in this country. These other providers will cherry pick where it makes sense to invest. I do not see this move adressing the current challenges but will only perpetuate them.
 
The Trutherizer said:
Big plays! If LLU does happen: Expect Neotel to get in on it maybe?

In any case... I can't wait to see the pricing structure they cook up now.
Click to expand...

Neotel? They can't even get on a playground jungle gym if they tried.
 
The loss must be related to the operating expenses and overheads related to the division that installs and maintains the last mile copper and DSLAMs, vs line rental. It ignores the profit made from data and call charges made possible by the last mile infrastructure.
 
They want to get rid of the copper as it's costing too much to keep replacing, so time it was someone else's problem.
 
Seriously said:
Telkom must be the only fools in the world that makes a "loss" on a fixed installation of copper years ago. Now if they claim it's because of cable theft then I presume they have no insurance and then I ask why should I pay the penalty for it?

Sies Telkom julle bly moegoes!
Click to expand...

I wish you know what you are talking about.
 
Garyvdh said:
Would like to see some big ISP's and owners of IECNS Licenses get together and buy this network as a consortium.
Then run it as a common resource.
Click to expand...
if you look at the article it probably wont be necessary for any SPV to have an IECNS licence because it will own facilities rather than operate a network - so ECNS licence holders will need to connect the copper to make a network - much like a landlord owning copper in a building. The details of CellCs deal on a lot of their infrastructure possibly forms quite a bit of the template.

Big Sub-Zero said:
I wonder who will be keen to invest his money in the fixed line business with this rampant copper cable theft in this country. These other providers will cherry pick where it makes sense to invest. I do not see this move adressing the current challenges but will only perpetuate them.
Click to expand...
The failure to have a meaningful strategy for LLU coupled with the provisions of the ECA and the Facilities Leasing Regulations means that cherry picking is inevitable. This approach potentially reduces the likelihood of rampant cherry picking - the status quo means that an operator has to go to quite a bit of effort to access lines at exchanges and will certainly gun for high value exchanges. This approach - done properly - will mean that while there will no doubt be some cherry picking the incentive for cherry picking will be equal between players and as a result the incentives to target less lucrative fruit which is underserved will also be equal among players.

BruceA said:
The loss must be related to the operating expenses and overheads related to the division that installs and maintains the last mile copper and DSLAMs, vs line rental. It ignores the profit made from data and call charges made possible by the last mile infrastructure.
Click to expand...
The issue is that the actual copper line has costs / return on investment considerations etc ... In a monopoly the operator makes profits from the sale of all services on the line and therefore has incentive to install copper and equipment and to "subsidize" the access costs in order to pillage the market by profit off data and call charges. In a competitive market where certain access rights are mandated the situation becomes quite different. Telkom's argument two years ago was essentially a case of arguing that they need a monopoly on the last mile of their network to make up for the losses incurred by a access line deficit. If all licencees can derive profits from data and voice on the network made possible they have to contribute towards to "loss" incurred in making access available.
 
Write-OFF !

Garyvdh said:
Would like to see some big ISP's and owners of IECNS Licenses get together and buy this network as a consortium.
Then run it as a common resource.
Click to expand...
People people ........

What has Telkom just done in terms of their "legacy" copper network ?


It has, however, been clear for a number of years that its copper network, or "legacy assets" as Telkom calls them, are providing diminishing returns. Telkom’s thousands of kilometres of copper cables have become, if not obsolete then no longer integral to the company’s future profitability. This was evident in the growing disconnect between how the market was valuing the business and Telkom’s own valuation. It was clear management needed to review the balance sheet.

That discount is also about the company’s poor performance and the fact that the market doesn’t believe it can deliver returns on what it owns. But will it be enough? Management thinks so, but the markets remain unimpressed.

Because, what ails Telkom is not the value of its assets, or the discount to which the share trades to net asset value. Telkom’s problem is its inability to provide its customers with the services they need. The company has failed to adapt to a changing world.

Part of the blame for this lies with the government, which has been an albatross around Telkom’s neck, and part is the fault of a series of poor decisions by the company’s previous management team

Read further -- > EDITORIAL: The real problem with Telkom


ANALYSTS have welcomed a move by Telkom’s board to write off the carrying value of the group’s old fixed-line network, saying this will boost shareholder value and bring the group’s share price in line with its net asset value

Here -- > Telkom stock ‘to gain’ from legacy network move]

HOW has this move affected the value of the thousands of kilometres of [OBSOLETE ] copper cables
SO "obsolete" that NO-ONE can do without them -- and cable thieves thrive on them
Some people [ MSM reporters ] talk such CR@P

Anyway -- expect some BEEEEEEE [ FRONT ] company to step in now and "acquire" the whole "OBSOLETE" copper network for cents on the rand !

PERHAPS when the "gangstas" own it then they will be less lenient on the "thieves"
 
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