The effects of last Thursday`s revelation that Telkom is to invest up to R30 billion to establish a next-generation network (NGN) by 2010 have been interesting. Firstly, the share price took a sharp drop, with R7 billion of the company`s market cap wiped out by late morning Friday, as investors are evidently scared the NGN costs will swallow up any dividends in the near future. This week the share price has been fairly volatile, but with the dominant trend being very much downward.
The fixed-line monopoly also got flak from second tier telecoms operators this week, which are worried the timing of Telkom`s R30 billion upgrade plan could entrench its anti-competitive behaviour.
It seems the announcement was bad news all round: consumers won`t see any benefits for many years, investors dumped shares like rotten tomatoes, and sort-of competitors got angry about the edge an NGN may give Telkom.
Not all it`s cracked up to be
HSDPA has been big news this week, with ITWeb reporting Tuesday that MTN`s HSDPA data cards - designed for private users - will be in the country by the weekend, and available through retailers by month`s end.
MTN`s initial statement about the service being available on 23 March wasn`t entirely true; but then neither was Vodacom`s announcement that HSDPA will offer subscribers 1.8Mbps downlink speeds.
Dave Glazier, junior journalist, ITWeb
MTN`s initial statement about the service being available on 23 March wasn`t entirely true; but then neither was Vodacom`s announcement that HSDPA will offer subscribers 1.8Mbps downlink speeds. Recent tests show one can expect about 600Kbps from Vodacom in reality, with peaks that might possibly get to 1.5Mbps - but for this I think users will have to stand right under the nearest tower at 4am.
SITA going European on us
Wednesday brought news that the State IT Agency (SITA) will partner a Belgian municipal IT group to jointly provide greater IT support for SA`s municipalities. The multimillion-rand project forms part of government`s strategy to improve municipal service delivery.
iBurst`s birthday gifts
Also making news this week was iBurst`s decision to reduce the price of modems and antennae, and scrap connection fees on monthly and 24-month contracts. This is part of its first birthday celebration, it says, adding that the price changes will mean savings of between 13% and 22%. Unfortunately, no changes have been made on the monthly tariffs - but I suppose it is only its first birthday.
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