Myth 1: Telkom‟s access network has been paid with taxpayers‟ money
It is a common misconception that Telkom‟s access network has been funded by government with taxpayers money. This gives rise to the notion that since the public at large has funded Telkom‟s network, it would be fair to allow all operators to have access to this network. This notion however is misplaced. The value of the net assets on Telkom‟s balance sheet when the company was corporatised in October 1991 was –R1,5bn. This negative value reflects the liabilities Telkom inherited from the Government, which offset the value of the assets received. The value of the buildings, network infrastructure and equipment that Telkom received from the State was R12,8bn but the total value of liabilities came to R14,3bn.
Furthermore, during the period 1991 – 2010 Telkom had invested more than R65bn in its network while it only receiving R4.4bn from Government as its
primary shareholder during this period. In the light of these facts, it is far-fetched to claim that taxpayers paid for Telkom‟s network and competitors should therefore have access to this network by introducing LLU.