Unbundle Telkom

[surfs-up]

Hey....as long as it doesn't affect 8ta - I joined 8ta a few months ago, and would hate to see this affecting my 10GB/month data deal. As much as I hate Telkom, I love my 8ta deal

 

[moosag]

I hope they bring Telkom down! They been holding us back for years now!!!! Time to pay up mother *******!!!!

Burn Baby! Burn!

 

[upup]

Lets look why Telkom is looking like it is.

The infrastructure is their, so everything should work.
Lets not worry and start getting the friends into high places, meanwhile the brain leave for other telco's and some overseas.
No that the correct people are appointed and the wheels starts to fall off, now we [the public] wants to kill Telkom. No like with all the towns and cities falling apart, the real fault lies on top at our government.
They insisted on their people to control, lets kill them, not Telkom and all the others.

 

[Johand]

If if they dont mind paying all the shareholders for the assets, then sure. But taking it zim style is not the answer.

+1. But that is why the fine is important, because the shareholders can't have it both ways. Fine them, buy out other shareholders (including PIC - that is not really government money) at the reduced, and unbundle. National Backbone and Last Mile should go to one not-for-profit company, with operations outsourced. All consumer channels and 8ta should be bundles into a private company, which pays the same as the rest of the market for the backbone and last mile.

 

[BTTB]

a lumbering giant trying to dodge a R4.5-billion fine for alleged anti-competitive conduct, which it says could sink it financially

I doubt that.
Shareholders can take a knock by receiving little or no dividends for a couple of years as ultimately they are to blame for the mess Telkom is in.
All that will happen is shareholders will continue to receive their dividends and Telkom will be directed by the shareholders to cut costs to much needed infrastructural and technological improvements to pay the fine and they will continue to go backwards. In other words much more of the same will happen. Shareholders need to take a knock on the chin, the country has for more than a decade. It is a pity the Competition Commission couldn't make an order directing the fine to be paid from Telkom's dividend stream, then it would be fair.

I suppose you could write a rather thick book about Telkom.

 

[MickeyD]

I doubt that.
Shareholders can take a knock by receiving little or no dividends for a couple of years as ultimately they are to blame for the mess Telkom is in.

I suppose you could write a rather thick book about Telkom.

I agree. The key phrase is "could sink it financially". This does not imply the end of Telkom but will definitely send a massive wake up to their Top Management that it is not "business as usual". They have been pondering the wholesale / retail split for at least 3 years already, with dedicated task teams assigned to it. Time to execute those plans, Telkom, if you want to survive in the jungle.

 

[quikdine]

Give Telkom he fine and give them 30 days to settle it. THis will force them into selling off assets thus causing the unbundling. also make a condition that the local loop is placed into a non profit company headed by a group of directors from different telcom companies and no gov offical or telkom exc may be in it.

 

[Bern]

I agree. The key phrase is "could sink it financially". This does not imply the end of Telkom but will definitely send a massive wake up to their Top Management that it is not "business as usual". They have been pondering the wholesale / retail split for at least 3 years already, with dedicated task teams assigned to it. Time to execute those plans, Telkom, if you want to survive in the jungle.

Good to know they are actually ready to do this

What is really funny (or worrying) is if you had to look at it from gov perspective, what gives them a better return - R3.5bill fine (straight in to gov coffers) or letting Telkom off the hook and maybe getting better share value and dividends (short term)?

 

[MickZA]

... also make a condition that the local loop is placed into a NON PROFIT company headed by a group of directors from different telcom companies and no gov offical or telkom exc may be in it.

ROFL .. given the ISPs insistence to date that Telkom remain responsible for the maintenance of the local loop I don't think you' ll find many takers. Mind you it depends on how much a NFP director can suck out of it in fees or will you limit that as well.