Worse to come for Telkom?

Telkom’s fine amounts to 5% of its market capitalisation of R9-billion...

Should this not be 0.5% if you take R9-billion as R9000-million?
 
Well you have Mweb, IS, MTN, Cell C, Cybersmart, Web Africa, and many more who could all sue for damages!

I think Vodacom is excluded due the fact that Telkom had shares in Vodacom during those time frames?
 
We've had a few comms ministers thinking they can turn the imminent death of the beast around, yet they just seem to stuff it up more and more every single time.

I have more faith in spotting a grazing unicorn on my way home today that the ability of Pule to fix anything.
 
daveza said:
So Telkom pays the fine to the Competition Commission who pay it to government which owns Telkom ?
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They own a shares in Telkom, but they definitely dont own Telkom.

End of the day we should be hoping no further disputes are raised in court, as we the consumers WILL end up paying for it. The more they lose in court, the higher their operating costs rise and the more they have to raise the price of their products to cover it.
 
daveza said:
But there's nothing stopping government from just handing the money back to Telkom ?
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They will in the end, as when this saga is complete, Telkom will, like SAA, come cap in hand to the govt and ask for a R1 trillion bailout, and of course being the incumbent comms operator, will receive the money. It will not stop their overpricing or dodgy business practices however, this is entrenched.

What will occur is that, like in the UK and other countries, we will have a meaningful choice of phone operators, and there will not be the opportunity to milk consumers any more, since there will be real competition
 
Come on, this case is only 8 years old. I still see a round of Appeals before it is finalised (say, another 2 years ...)
 
“A structured separation between Telkom’s wholesale and retail arms would be ideal,” the insider said
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I do not understand why the Competition Tribunal did not include the separation between Telkom wholesale and retail in the ruling.

The fine is an incidental slap on the wrist for Telkom, the ICT sector still needs Telkom to be split to ensure that Telkom cannot continue to abuse its market dominance.

Communications Minister Dina Pule released a brief statement on the tribunal’s judgment this week. She said the fine would impact on Telkom’s finances, but the matter was now concluded and she was committed to working with Telkom to ensure the company was revitalised and contributed to achieving socioeconomic benefits for South Africa.
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I think that can be loosely translated as "Pule will find ways of reinforcing Telkom's monopoly".

Dinosaurus Pule should have said that she is going to work together with the whole ICT sector (not just Telkom) to ensure that the sector as a whole recovers from Telkom's government sponsored abuse of monopoly.

I'm sure that considerably more jobs could be created outside of Telkom if the ICT sector was not constantly crippled by the despotic and corrupt ruling cANCer party.
 
I hope MTN, IS and the likes take hellkom for everything they have. Sure we the taxpayers will probably land up footing the bill, however that means less money will be going towards housing subsidy (as an example of rediverting tax money), poor people will get poorer, eventually getting to the point of not being able to recover no matter what the government do, then take it upon themselves to rid this country of the cANCer virus (wishful thinking).
 
I wish I could say I feel sorry for them.

Elke hond kry sy dag = 'n brak kry twee! :twisted:
 
"Retardation Of Innovation"

The greatest description of the South African Telecoms landscape ever given.
 
chrisc4290 said:
They will in the end, as when this saga is complete, [highlight]Telkom will, like SAA, come cap in hand to the govt and ask for a R1 trillion bailout, and of course being the incumbent comms operator, will receive the money.[/highlight] It will not stop their overpricing or dodgy business practices however, this is entrenched.

What will occur is that, like in the UK and other countries, we will have a meaningful choice of phone operators, and there will not be the opportunity to milk consumers any more, since there will be real competition
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All the more reason for Telkom to be split up into completely separate wholesale and retail entities, the result would be a much leaner service-driven wholesale company and a completely separate retail company that either sinks or swims.

If the retail company sinks, it will be autopsied and divided amongst competitors.

The wholesale company (Telkom proper) could retain ownership of the local copper loops and provide wholesale access to retail companies and would open up the landline market, thereby removing the need for full LLU (there is no point in waiting for full LLU to happen with the DoC and ICASA driving in reverse all the time).

There should be no option of a government bailout for Telkom.
 
instead of giving them huge fines, why don`t they force them to do make it right?, like unbundling and naked adsl
 
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