Tough task ahead for Telkom chief

[Sneeky]

Molotsane says he will look to balance Telkom’s social role with shareholder demands,,,,

We should be worried about our customers and we should be worried about the returns we must make for shareholders,,,,,

On this score, analysts say Molotsane’s efforts to boost shareholder value will be hampered by the fact that Telkom is considered a mature business and has little room left to cut costs. It has already reduced its workforce by almost a fifth. Or, as a telecoms analyst puts it: “The lower hanging fruit in terms of cost-cutting has already been taken out.”
The key issue for consumers and small businesses will be whether Molotsane reins in what industry players regard as anti-competitive prices.
A recent report compiled by Genesis Analytics says telecommunications pricing in South Africa “clearly suggests that Telkom’s pricing structure is excessive, and that some sort of intervention in the market may therefore be appropriate”,,,,,,

“Operators are sitting there[in SA] living off the earnings of the past instead of innovating,” said Sutherland. “South Africa is just not at the cutting edge ... it is delaying the move into an information and knowledge-based economy.”

With earnings growth of 53% in its last financial year, expectations of healthy growth in the current year and a 78.5% rise in its share price since the low of R72.55 last September, shareholders will be quick to complain about any perceived erosion in value.

http://www.sundaytimes.co.za/articles/article-business.aspx?ID=ST6A136272

 

[antowan]

Telkom should never have been privatized without the immediate deregulation of the market. New entrants should have been allowed into play from day one. To hell with the shareholders of Telkom. As long as there is not enough and fair competition in the market (the SNO is not enough BTW) they can wait!

South Africa FIRST!

 

[BTTB]

South Africa FIRST!

Telkom should never have been privatized without the immediate deregulation of the market. New entrants should have been allowed into play from day one. To hell with the shareholders of Telkom. As long as there is not enough and fair competition in the market (the SNO is not enough BTW) they can wait!

South Africa FIRST!

My sentiments echoed.
Those shareholders of Telkom have cost this country big time.
Should I start the long list all over again?

 

[Celemasiko]

German Telekom has been privatised and has been immediately placed under close surveillence by the German regulators. And they have immediately started slapping the Telekom's bosses face. Thats why we have now such competitive prices. Situation before was equally like here with Telekom charging exorbitant prices, e.g 1992 one minute to USA R 4,00 and today R 0,68...and ADSL prices I mentioned those quite often.