Could former SABC CEO Dali Mpofu or former Vodacom CEO Alan Knott-Craig be approached to take the reins at listed telecommunications group Telkom? Mpofu and Knott-Craig are two of the high-profile people external to Telkom whose names have been linked to the job in recent weeks.
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Neotel is playing down the importance of the retail consumer market to its business, saying its main focus into the future will be on the corporate and wholesale markets. This is after the company signed up fewer than 50 000 retail subscribers. CEO Ajay Pandey says Neotel’s ideal revenue mix is 10% from its retail consumer business, 30% from the wholesale business and 60% from the enterprise space. It does not plan to exit the retail market.
It’s long been government’s desire to bridge the digital divide, to get communications technology in the hands of the rural poor. But its every attempt to address the problem has failed. Now commercial operators may achieve what government couldn’t. The late Ivy Matsepe-Casaburri, the former communications minister, had her heart in the right place. She genuinely wanted people in underserviced areas to get access to the latest communications technology.
JSE-listed Blue Label Telecoms says a controversial contract signed with Telkom’s ailing Nigerian operation, Multi-Links, is being reviewed. Blue Label co-CEO Mark Levy says the contract has reached its annual review time, and the company is willing to make some concessions to help save the troubled Multi-Links.
Telkom has resumed its high-profile anti-Neotel taunts on Gauteng billboards, this time erecting a giant sign just metres in front of its rival’s new head office in Midrand, north of Johannesburg. In a clear reference to Neotel’s orange corporate branding, the Telkom hoarding says: “Remember, exercise caution when you see orange.”
A plan by the Independent Communications Authority of SA (Icasa) to cut wholesale call termination rates may be delayed until next year, parties close to the process say. The rates, which were supposed to be cut last month as a first step on a two-year glide path down, are the fees the operators charge each other to carry calls onto their networks.
The apparent collapse of pay-TV operator Super 5 Media is unfortunate. It means less chance of the kind of rivalry that fosters innovation and drives down prices. At the top end of the market, however, competition to DStv may come from a less obvious source. Super 5 Media, formerly known as Telkom Media, was cursed almost from the start. When Telkom, under former CEO Reuben September, decided to end its investment, the writing was already on the wall.
The Independent Communications Authority of SA (Icasa) has received a written assurance from pay-TV licensee Super 5 Media that it is still in operation. “We received a communiqué from Super 5 Media a week before last clarifying its position in relation to recent press reports,” says Icasa spokesman, Paseka Maleka.
South Africans once regarded Neotel as having the real potential to offer a competitive alternative to Telkom in residential services. But as the company releases an uninspired prepaid retail offering this month, that dream already appears to have faded.
Outgoing Telkom chief financial officer Peter Nelson has offloaded more of the shares he holds in the JSE-listed telecommunications group. Telkom announced late on Friday that Nelson had sold nearly 40 000 shares worth more than R1,3m. He sold the shares last Thursday.