Telkom promises a sympathetic ear
Telkom was grilled by shareholders who said that the fixed-line telephone monopoly was not taking the growing consumer unhappiness seriously enough, and it stood to lose much of its market share when the much delayed second national operator opened for business.
Recent research by think-tank BMI-TechKnowledge said about 50% of SA’s top 350 companies would consider switching to a rival if it offered competitive prices. Mtshotshisa said “we pay a lot of attention to customer satisfaction”, and Telkom did “have a plan” to interact with several of its harshest critics.
The company was serious about “rectifying what is perceived to be wrong”. But at least one shareholder said this was purely “rhetoric”, and Telkom’s dismissive attitude and arrogance had done nothing to prepare it for imminent competition.
Another shareholder said “at the moment, you are unrivalled, or should I say, unchallenged”.
Incoming CEO Papi Molotsane has overseen an apparent policy of appeasement, which saw Telkom drop a R5m lawsuit against website Hellkom, which criticised Telkom’s prices and service. Telkom said it felt “there would be no strategic value in pursuing” the legal action.
Telkom has also met with the owners of the myADSL website, another vehement critic, to discuss the high price of its broadband services.
Despite the heavy criticism, all of Telkom’s resolutions were passed, including one that allows it to amend its articles of association and buy back more of its own shares. The resolution to amend the articles was approved by 53% of shareholders with another 43% abstaining.
Mtshotshisa, however, refused to discuss rumours of management discontent.
Since Molotsane took over, talk of management unhappiness at Telkom has spread, particularly with the suspension without explanation of three senior executives: investor relations officer Belinda Williams, sales and marketing executive Pinky Moholi and human resources executive Oupa Magashula.
The three were sidelined in a recent management reshuffle that saw Molotsane take charge of the parastatal.
Telkom said it would embark on a roadshow to provide basic education to its new investors about how the stock market works, to raise awareness about the rights and responsibilities of its shareholders and to promote a culture of saving.
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