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Telkom fights commission changes

26  April  2011
The Competition Commission's motives for a last-minute application to amend its papers in a market abuse case against Telkom have come under close scrutiny after Telkom, contesting the application, claimed it would be prejudiced if the commission won. Appearing before the Competition Tribunal last week, advocate Alfred Cockrell, senior counsel arguing for Telkom, accused the commission of attempting to introduce a "margin squeeze case through the back door", through the nature of its amendment. The parties...
 

SA's 'cell wars' send adspend rocketing

23  April  2011
Figures from Nielsen Advertising Information Services show the biggest spender in the first two months was Vodacom - R59.1-million, or 36.14% of cellphone advertising spend. MTN spent R53.3-million, Cell C R21.57-million and Virgin R17.55-million. Nearly R60-million of the total was spent on TV advertising. From 2008 to 2010, Vodacom spent R1.44-billion on advertising, followed by MTN at R1.35-billion, Cell C at R855.39-million and Virgin at R196.65-million. Newcomer Telkom Mobile's 8ta was launched in...
 

8ta fires the next salvo

21  April  2011
The battlefield is ready, the guns are out and SA's mobile operators are shuffling troops into position for what could turn into a protracted war. The latest operator to fire a salvo into the field of battle is Telkom's 8ta, with its launch this Easter weekend of its new BlackBerry service. Telkom's pricing is aggressive - up to R10 cheaper than competitive offers - and is also offering "free" access to YouTube (up to 500MB of use per month) and calls to a customer-designated Telkom landline. 8ta, launched...
 

WACsing the competition

21  April  2011
The arrival of the Western African Cable System -- or WACs -- that landed in the west coast town of Yzerfontein on Tuesday will accelerate competition in the local market. But, according to experts, the impact on broadband prices may not be immediate -- bottlenecks in the country's terrestrial fibre-optic network still remain a perennial impediment to lowering the costs for end-users. The undersea cable, stretching 14 500km along the west coast of Africa to London, is an armoured shell of wire, tar and ...
 

CWU warns Vodacom, MTN of strike action

20  April  2011
The Communication Workers Union (CWU), which represents workers in the information and communication technology sectors, on Wednesday warned companies such as Vodacom (VOD) and MTN Group (MTN) that it might embark on industrial action if no resolution was found to outstanding labour matters. CWU is engaged in a labour dispute with a number of companies, including Vodacom, MTN and the South African Post Office. The union has taken no decision yet on industrial actions. Thabo Mogalane, deputy general secret...
 

Neotel to profit at SA's expense

20  April  2011
Neotel is determined to turn a profit in the near future, a target the market expects it to meet as it scales down on capital expenditure. However, its ambitions will cost the local consumer, as lower infrastructure investment will mean it will never become a fully-fledged second national operator, or achieve its 15 percent market share target that was set when it launched four years ago, note analysts. Neotel's new CEO and MD, Sunil Joshi, yesterday said the company would be profitable at an earnings...
 

Vodacom launches 43Mbps network

19  April  2011
Vodacom has officially unveiled its new double-speed 43.2Mbps network in SA. This is something we've been working on for a while and it's double the speed of the thing Cell C called 4G," Vodacom's executive head of media relations Richard Boorman told News24. The company has raced to roll the network out around the country and Boorman said that it put Vodacom in a clear lead over competitors in SA. "More than 1 000 base stations in metropolitan areas across the country have been enabled with this new...
 

Data war rages between Vodacom, Cell C

19  April  2011
SA is in the middle of a data war between key telecommunications companies, particularly Vodacom and Cell C, and a price war is not far off, says telecommunications analyst Arthur Goldstuck. Goldstuck made his comments yesterday after the weekend announcement by Vodacom, the country's largest cellular network operator, of upgrades and a new pricing structure. "I find it very interesting that Vodacom made their announcement just days before Cell C is due to launch an upgrade to their network," Goldstuck...
 

Vodacom left red-faced

19  April  2011
MOBILE phone giant Vodacom has been left red-faced after antagonising Eastern Cape legal heavyweight Advocate Renee van Rooyen by handing his name over to the National Credit Bureau (NCB). Van Rooyen, SC, was awarded R50000 damages by the Port Elizabeth high court after it found that Vodacom had defamed him by listing him with the NCB. People listed with the NCB are considered to be a bad credit risk and their names are placed on an easily accessible website for the world to see. Van Rooyen, 62, has been...
 

WACS lands in SA

19  April  2011
The West African Cable System (WACS) has landed at Yzerfontein in the Western Cape today. The new USD650-million submarine cable, laid down by Alcatel-Lucent, originally had a 3.84Tb/s capacity, but this was increased to 5.12Tb/s, My Broadband reported. In addition to South Africa, the cable will also serve Portugal, the Canary Islands, Cape Verde, Cote d'Ivoire, Ghana, Togo, Cameroon, Nigeria, the Democratic Republic of Congo, Angola and Namibia. MTN is the project's biggest single investor, with a...
 

Cell shrinkage

19  April  2011
THIS week Cell C will launch an upgrade to its new cellular network following an announcement by Vodacom Group on the weekend that effectively amounts to the same thing. Both operators have installed a new 3G standard that technically allows for speeds of up to 43.2Mbps - or about ten times faster than Telkoms best ADSL offering. But you wonҒt see those speeds in practical use, so why do they bother advertising them? The answer to that has to do with both marketing and the practicalities of cellular...
 

Cell C fails to win over ASA in ad battle

18  April  2011
THE Advertising Standards Authority of SA (ASA) on Friday ordered Cell C to withdraw its TV advertising relating to Vodacom 's new "red" campaign, and gave both 10 days to make submissions on further sanctions. Vodacom is believed to be considering asking the ASA to consider a preclearance requirement for Cell C, which would require it to submit its advertising to the ASA for approval before publishing or broadcasting. In terms of the finding, Cell C can continue running its radio and print advertising...
 

Mobile phone war hots up

16  April  2011
The Advertising Standards Authority is considering whether to impose sanctions on CellC, following a ruling against it on Friday. The ASA found that Cell C could not substantiate several claims made in recent ads, and that it was disparaging of Vodacom's latest advertising campaign. Cell C was ordered to withdraw its TV advertising and make changes to its most recent print and radio campaign. The ads poke fun at Vodacom's decision to rebrand, losing its blue and green colours for the red corporate colour...
 

Neotel's LLU gamble

11  April  2011
SA's second national operator has lodged a complaint with the industry regulator against Telkom's refusal to free up access to parts of the local loop. This move could see the entire issue resolved without the need for regulation. Unbundling the local loop - the last bit of copper that connects end-users to Telkom's network - has been on the cards for at least five years. After constant delays, the Department of Communications last November finally set a deadline for the process to be wrapped up by November...
 

Vodacom faces USD41m battle

10  April  2011
Vodacom has been dealt a blow in a USD40.8-million court battle with former consultant Moto Mabanga, who helped the cellphone company with negotiations during a fierce battle with its business partner in the Democratic Republic of the Congo (DRC). This week, a Kinshasa judge granted an order in favour of Mabanga, which will allow him to force Vodacom to put shares worth $40.8-million in escrow. Vodacom said it intends to appeal the order, which is not yet final. Mabanga, of Cyprus-registered Nameco Energy...
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