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Telkom looks to growth in cell market

22  June  2010
TELKOM is targeting a 10 percent share of the mobile market in the next three to five years as it prepares to become the country's fourth mobile operator. Telkom will spend R6bn in the next five years to roll out its cellphone network infrastructure. It wants new revenue streams as its traditional fixed-line business is declining. But it will face stiff competition from established players Vodacom , MTN and Cell C, which have among them more than 50- million active SIM cards in the market. Peter Nelson,
 

Ailing Telkom to trim more costs

22  June  2010
Fixed-line operator Telkom wants to add more than R2 billion to its operating profit line by cutting costs. During yesterday's results presentation for the year to March, the company said its operating margins had come under pressure as costs crept up. Outgoing CEO Reuben September explained that operating costs were higher as it cost more to run Multi-Links, salary increases were above inflation, and Telkom spent more on preventative maintenance. The telco's operating expenditure grew 8.4 percent, to
 

Telkom feels pinch of recession, competition

21  June  2010
Telkom's full-year results briefing for 2010 was presided over by financial director Peter Nelson, and September also avoided the usual post-presentation interviews. September, who will leave the group in November after serving as CEO for three years, described the 2010 financial year as "tough with muted revenue growth". He cited the impact of competition and a weaker economic environment for the group's poor performance. While the sale of Telkom's 15 percent stake in Vodacom to UK-based Vodafone and
 

Telkom sees profit nose-dive

21  June  2010
Telecommunications group Telkom's profit plummeted for the year ended on March 31. Headline earnings per share had dropped to 46,8 cents for the year under review compared with 610,5 cents a year earlier, the group said in a statement on Monday. Normalised operating revenue was up 0,7 percent to R37-billion. The group's profit was partially affected by its Nigerian interest Multi-Links which it purchased for $410-million (R3-billion). "Multi-Links remains a major concern. We have impaired goodwill of
 

Telkom under pressure

21  June  2010
Telkom's revenue was almost stagnant in the year to March, as it continued to face declining fixed-line penetration in SA and challenges from its Nigerian operation. The company this morning released its results and said turnover from continuing operations - which strips out Vodacom and Telkom Media - grew a mere 0.7 percent, to R36.8 billion. Most of this increase was thanks to the inclusion of 11 months' turnover from MWeb Africa, which added R311 million, and growth in revenue from its 64.9
 

Telkom mobile service here soon

21  June  2010
Telecommunications group Telkom said on Monday that it remains on track to launch its mobile service in 2010. Speaking at a teleconference as part of the company's annual results announcement on Monday, Telkom Group CEO Reuben September confirmed that the launch remained on track for 2010, although the outgoing CEO did not specify a date. "Telkom is at an inflection point with growth in traditional fixed line voice revenues declining, September said. "The majority of global fixed line incumbents have
 

Telkom must get into mobile markets urgently - CEO

21  June  2010
JSE-listed telecommunications group Telkom must get into the mobile market urgently, its outgoing chief executive officer Reuben September said on Monday. He was addressing Telkom's annual results presentation. Earlier, Telkom reported that profit plummeted for the year ended March 31, with headline earnings per share dropping to 46.8 cents compared with 610.5 cents a year earlier. "Simplicity, quality and value will be Telkom's three main guiding principles to its entry into the mobile market," September
 

Telkom coughs up R610m in legal dispute

21  June  2010
Telkom will have to pay Telcordia USD82 million over a breach of contract that happened nine years ago. The fixed-line operator will pay out USD30 million because it breached a contract with the US-based company, as well as another USD52 million in damages, which in total equates to just over R610 million. Telkom says the dispute arose in 2001 when Telkom cancelled a contract with Telcordia. The US-based company was meant to supply an integrated end-to-end customer assurance and activation system. After
 

Telkom talks up 10Mbps ADSL and triple-play deal

21  June  2010
Telkom's fixed-line broadband network is getting faster, but so far only for some consumers. The JSE-listed telecommunications company announced on Wednesday that some users of its digital subscriber line (DSL) broadband service would enjoy an increase in line speeds to up to 10Mbit/s, from the fastest 4Mbit/s now. But Telkom hasn't spelt out where the service will be offered and when. Until now, the company's DSL products have been available in three varieties: 384kbit, 512kbit/s and 4Mbit/s. "Speeds of
 

Telkom says ADSL caps are the bee's knees

21  June  2010
Telkom has gone on the offensive by comparing its capped offerings to its competitors' uncapped packages. In a newsletter entitled "Broadband: Put a cap on it", the telecoms giant claims that current uncapped packages are subject to hidden terms and conditions. According to My Broadband, Telkom claims that its 'Do Broadband 1' offering plus a 1GB top-up is a better deal than an entry-level uncapped product (MWEB). The 'Do Broadband 1' package offers 1GB of international data plus 10GB local usage for R199
 

August date for Telkom DSL speed boost

21  June  2010
Telkom will boost the speed of its broadband digital subscriber line (DSL) service in mid-August, TechCentral can reveal exclusively. According to Telkom SA MD Nombulelo Moholi, the company has had to delay implementation of the new, higher-speed service because of a network freeze imposed on it as a result of the 2010 soccer World Cup. "The product is ready," says Moholi. She says Telkom will offer a DSL package that provides consumers line speeds of up to 10Mbit/s, but only where the network supports
 

Telkom sets aside R6 billion for mobile business

21  June  2010
Telecommunications provider Telkom would launch its mobile offering in South Africa within the 2010 calendar year, outgoing CEO Reuben September said on Monday. He emphasised that, at launch, the company would have 40 percent of its own population traffic covered, while full traffic coverage would be provided with roaming agreements to use existing mobile operator's infrastructure. Telkom has placed orders for 2 000 base stations, which it would roll out in the current financial year, with the future aim
 

Telkom attempts to stop yet another strike

21  June  2010
Telkom turned to the courts on Monday to force a group of protesting workers to stop an illegal strike. The company was served papers at the Labour Court in Johannesburg in a bid to stop an illegal strike action. Striking workers were blamed by residents for vandalising dozens of phone distribution boxes around the city. Telkom revealed 14,000 customers were cut off because of vandalised distribution boxes over the past three weeks. Seventeen suburbs were affected and business owners say they are losing
 

Telkom needs to act fast, or else

21  June  2010
A tougher competitive environment and the slowdown in economic activity have added to Telkom's difficulties in the past year. The telecommunications group has struggled to assert itself since the unbundling of its 50 percent stake in Vodacom and continues to be beset by trouble at its Nigerian subsidiary Multi-Links. Telkom released annual results Monday, revealing an 11.2 percent decrease in normalised headline earnings per share from continuing operations to 473 cents per share. Group operating
 

Vodacom tests LTE

18  June  2010
Vodacom has confirmed it is testing an LTE product for high-speed wireless broadband. The company says it has been looking at the option for some time; however, this is the first test where the LTE equipment has been pulled together with its existing network infrastructure. Vodacom can't confirm whether it will roll out the test to its customers, since a commercial product will depend on many aspects of the regulatory environment. Most notable is the available spectrum that operators will need to produce
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