THE SMART NEWS SOURCE | Feb 09 2010 22:04 | LAST UPDATED Feb 09 2010 22:04 |
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Fixed-line phone group Telkom will begin offering mobile phone services from 2010 as it launches a new mobile business to offset falling profit from its fixed-line business. "We believe there's room for the fourth mobile operator in South Africa," Telkom CEO Reuben September said in conference call on Tuesday. Telkom has seen its revenue at its core fixed-line business come under pressure after spinning off and selling its stake in Vodacom, South Africa's biggest cellphone operator and Telkom's main earnings driver. The company plans to spend R6-billion over five years to launch a mobile phone business as profits from its fixed-line business tumble. September said the fixed-line phone operator -- the biggest in Africa -- saw opportunities in the mobile data market as competitors MTN, Vodacom and Cell C dominated the near-saturated voice market. The company, which already has nearly 9 000 mobile data services customers, did not disclose the full details of the strategy due to "competitive sensitivities". -- Reuters TOPICS IN THIS ARTICLE
Comments
bantu nzira on November 24, 2009, 11:47 am
Bantu, good comment. However, it is due to incompetent management that was and still is very active at Telkom. Also, as to your vulture comment, considering the level of intelligence of most senior management at Telkon it would have been an extremely easy sell for all consulting firms to convice Telkom to do the analysis and thus create a massive vulture revenue stream for themslves, which as I am certain you will agree, would have gone directly either Tokyo or Cyril, or a close relative. You would have thought that they (Telkom) would have had some sort of three year stategy for such a massive monopoly.
Apocalypse Now on November 24, 2009, 11:54 am
Why don't they work on getting their land line service working smoothly before they tackle mobile services... anyone tried to get a land line lately? what a joke!!
Roulla Antoniou on November 24, 2009, 12:04 pm
Telkom are mad. They are so hated for ripping cutomers off that I doubt people will move over in droves to them. If there were more competition in fixed line phones Telkom would lose so many customers. They need to bring their broadband prices down drastically for anybody to have a bit of faith in them. Then they need to sort out their service. It doesn't help when you have problems on your phone and have to wait a week for it to be sorted out.
Tiger Lily on November 24, 2009, 12:59 pm
Apocalypse Now ...then again, putting aside the usual cynicism, a 6 billion injection into the economy is not too be scoffed at.. and as for competition and vultures - more competition is needed amongst the vultures living off the government, including tax payer, meaty bones...
Basher Biggs on November 24, 2009, 1:06 pm
Basher I agree R6 billion is not to be sneezed at, but it will give you a massive coronary if you have to pay R10 billion for it.
Apocalypse Now on November 24, 2009, 1:19 pm
OK, so now they stuffed up land-lines and want to destroy mobile phones, why don't they sell their land-line monopoly and use the proifts to get into mobile technology? If they can't focus on their core business someone else should!
white trash on November 24, 2009, 1:36 pm
A year ago I told Hellkom to stick their landline where the sun don't shine. They're five TIMES more expensive than similar services in civilized countries, and, in addition, are 38% owned by the ANC through various front organisations.
Have you noted how 'busy' their technicians are over weekends? Double pay, of course. As for the other mobvile service providers, thery're also a cozy cartel.
Bernard Hellberg on November 24, 2009, 5:11 pm
Better still, why don't they simply shut up shop ? No one will miss them.
Dave Reynell on November 24, 2009, 6:28 pm
Good old sperm counters at it again - they're resently still milking the nation with their (thankfully) ever receding monopoly and now wanna play "me to" in the space they ensured would whip their butts originally; how cute, how sad... they should be providing infrastructure for the nation to do business and should not be a profit-seeking outfit
Paul Aarden on November 24, 2009, 11:29 pm
They should actually change their name and most certainly never use the name Telkom in any new venture since marketing that name would be an exercise that not even the most accomplished marketers would relish.
Room for a fourth service provider? indeed! - two problems come to mind here - firstly in order to provide a service one needs to understand what service means and secondly one needs to understand what is required in order to provide that service! Enough said? Amen!
peter nel on November 25, 2009, 2:35 pm
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If you go in the depth of it you will get to know that so many tonnes of consultants were engaged to give advice for the Vodacom stake disposal. And an equal number of tonnes of analysists were hired to give advice to Telkom to start a mobile business, then you will understand vulture business practices of 21 Century.