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Telkom left speechless

Is the telco's lack of reaction to the Competition Tribunal's ruling a case of stunned silence or incompetent public relations management?
Martin Czernowalow
By Martin Czernowalow, Contributor.
Johannesburg, 29 Jun 2007

The end of this week finally brought to a close one of the most anticipated sagas in the IT industry, with the Competition Tribunal's ruling on the proposed R2.4 billion merger between Telkom and Business Connexion (BCX).

In a decision that took much of the market by surprise, the tribunal ruled against the deal, derailing Telkom's hopes of acquiring an IT services company. Reasons for the decision will be given in due course, but it seems the tribunal took heed of the Competition Commission's earlier recommendation not to allow the deal.

This was based mainly on concerns the merger would further entrench Telkom's position of dominance in the market.

Perhaps the decision surprised Telkom more than others, as - by Friday morning - the fixed-line monopoly was still not ready to issue a media statement. This is either a stunned silence or incompetent public relations management - but what else have we come to expect from Telkom. It's not like the company didn't know that the ruling was coming or anything. Right?

Msimang speaks his mind

It's not like the company didn't know that the ruling was coming or anything. Right?

Martin Czernowalow, news editor, ITWeb

Earlier this week, ITWeb conducted a candid interview with new Home Affairs DG Mavuso Msimang, who slammed the dysfunctional department, saying: "IT problems at Home Affairs are unbelievable."

Not pulling any punches, the former State IT Agency CEO said transformation will not come to the department unless changes are made in senior management. Finally, someone who is willing to admit the problems start right at the top, instead of passing the buck - as is accepted practice among government officials.

But it remains to be seen whether the much-respected Msimang will be able to succeed where others have failed. We wish him the best of luck.

It's raining broadband

Gauteng, if not the whole country, seems caught up in mania. Gauteng finance and economic MEC Paul Mashatile this week pledged R93 million to a Blue IQ project promising the province's residents and businesses ubiquitous broadband.

This is the latest in a string of proposed broadband projects that are in the pipeline - along with Joburg's broadband network project and countless other networks that are being developed by private operators and local government.

The latest proposed effort is called Blue Umbrella, which is an intervention by the provincial government designed to integrate municipal and provincial government into a consolidated broadband strategy.

The fact that there seems to be no cohesive strategy to integrate the various initiatives so that they don't overlap has not yet occurred to anyone, but I suppose it's a case of better too much than too little. Now if only something could be done about the price of bandwidth...

Shilowa's secret weapon

In his budget speech this week, Gauteng premier Mbazima Shilowa flexed his muscles, saying the province is well positioned to host the international broadcasting centre (IBC) for the 2010 World Cup.

Johannesburg, Durban and Cape Town are the three short-listed cities to host the IBC and government says the decision is imminent. The biggest weapon in Shilowa's arsenal, it seems, is the fact that CNBC Africa is situated in the province. This, he said, is a sure winner, as it affirms Gauteng is a key media hub in SA. I don't want to be funny, but this seems rather lame.

Ok, so perhaps the broadcaster's presence is special or something, but I fear most people are likely to ask: "CNBC who?"

When approached for comment, a bemused Peter Ndoro, spokesman for the company, listed some of the broadcaster's latest and greatest technology. However, questions about the company being a pivotal player in securing the IBC for Johannesburg were met with a nervous giggle. Clearly, someone should have informed CNBC Africa about this. No pressure boys!

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