The revolution sweeping SA telecoms
A high-stakes game of poker is unfolding in SA’s telecommunications industry
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A high-stakes game of poker is unfolding in SA’s telecommunications industry
And there I was thinking that prices had dramatically come down in the last 4 years. They'll come down even more in the next 2.No offense but we have been seeing articles exactly like this for the last 4 years or more. I may be jaded but I don't expect the status quo to change anytime soon.
No offense but we have been seeing articles exactly like this for the last 4 years or more. I may be jaded but I don't expect the status quo to change anytime soon.
No offense but we have been seeing articles exactly like this for the last 4 years or more. I may be jaded but I don't expect the status quo to change anytime soon.
I think Duncan's point is that it IS real this time. It may not yet be obvious to end users, but there are real changes happening in the industry that will have an impact. Simply having Neotel offering physically separate infrastructure changes the basic structure of the market. Whilst only a few large users have yet experienced the changes, they will filter down through the market. Some of the potential ownership changes could be equally dramatic. It's by no means business as usual, and Telkom is really threatened - reading their CEO's comments.
BMI-T’s Smit feels the offer from Mvela is counterintuitive as it does not gel with government policy, which is set to lurch to the left after the next election. “Government wants to get more involved in telecoms, not less,” he says.
And there I was thinking that prices had dramatically come down in the last 4 years. They'll come down even more in the next 2.
I think Duncan's point is that it IS real this time. It may not yet be obvious to end users, but there are real changes happening in the industry that will have an impact. Simply having Neotel offering physically separate infrastructure changes the basic structure of the market. Whilst only a few large users have yet experienced the changes, they will filter down through the market. Some of the potential ownership changes could be equally dramatic. It's by no means business as usual, and Telkom is really threatened - reading their CEO's comments.
Cheap, unfettered access to non-state-sanctioned information is not high on the list of anc priorities.
Yes, it is a form of censorship if you think of it. They certainly don't want the masses to be enlightened about how corrupt they really are. I predict that sooner or later, there will be draconian censorship as in China, in this country and crit-ing the goverment, even on a forum like this will result in jail time or torture
Even if telkom died their long anticipated death it would not change the status quo of telecoms in SA. The problem has never been telkom but government and that hasn't changed. Like Syndyre pointed out, everyone expects government to become even more involved in telecoms, not less. This, of course, makes perfect sense if you consider how the ANC have run and will continue to run this country.
Cheap, unfettered access to non-state-sanctioned information is not high on the list of anc priorities.
When Telkom was 30%-owned and run by strategic foreign partner Thintana — comprising SBC Communications (now AT&T) and Telekom Malaysia — it did not invest sufficiently in its network. Thintana cuts costs to maximise dividends. At the first sign of competition, it bailed and ran. This short-termism has left Telkom with a big headache — it now has to spend billions of rand more than it should have to keep itself relevant and fend off new rivals. Though it isn’t good for profits in the near term, some analysts believe it is imperative for the company’s survival in the longer term.
I disagree with your opinion of Goverment being the ones to carry sole blame for this situation. The problem has, and IMO, will always be profit taking.
The reason we are where we are is largely becuase of the above statement. In the absense of competition they filled their pockets, and honestly, if I was an investor I would have done the same. So we sit with a Telkom that has the coverage that no other player can match, but unfortunatly for them and ultimately the consumer, is that now instead of capitalising on that they have to spend billions on infrastructure.
And IMO when they are done, and hopefully soon, Telkom will be a major force in the market. No other player can offer services to virtually every corner of SA.