Cybersmart CEO Laurie Fialkov has warned against government involvement in telecommunications pricing in South Africa.
Cybersmart has been one of the pioneers in rolling out fibre-to-the-home and fibre-to-the-business services across the country.
A lot of money is needed to build a new fibre network, and receiving adequate funding is therefore important to be a relevant player in the FTTH and FTTB market.
Fialkov also warned against “stupid money” in the industry.
“Massive funding being injected into a company with no business plan whatsoever, with the express purpose of buying market share, can destroy the margins which are needed to create a sustainable fibre businesses,” he said.
Fialkov added that government involvement in determining pricing in the telecommunications industry is a nightmare.
“I understand the #DataMustFall campaign, and to a certain extent agree with it, but unless there is a monopoly preventing lower prices, market forces should determine the price,” he said.
He is also against the nationalisation of telecommunications assets, especially under the pretence that communications services are a constitutional right.
Fialkov said political uncertainty in the telecommunications market is currently an issue which keeps him, and many of his peers, awake at night.