Telkom announced its annual financial results early on Monday morning, declaring an ordinary annual dividend of R5, and a special dividend of R4, much to the delight of shareholders.
General industry response was less enthusiastic, however. Many wonder why, in filing its proposed pricing changes with ICASA the same morning, the company is only prepared to drop overall prices by a measly 2.1%. It did just make R14 billion for the year, after all.
The fixed-line operator`s gregarious CEO, Papi Molotsane, spent some time after the results presentation explaining the decision to spend R30 billion on a next-generation-network (NGN). The migration towards IP-based networks is essential, he says.
Speaking of NGNs...
Many wonder why Telkom is only prepared to drop overall prices by a measly 2.1%.
Dave Glazier, junior journalist, ITWeb
Yesterday ITWeb reported that Uganda Telecom (UTL), in collaboration with Business Connexion Africa, has implemented its own NGN in a project costing about $5 million.
UTL, who began deploying IP digital subscriber line access multiplexer infrastructure last year, expects the NGN to improve broadband access and turn around poor recent financial performance.
Pouring more money into Hanis
Monday saw Home Affairs mentioning to Parliament that R480 million more will be needed to complete Hanis - the Home Affairs National Information System. Time will tell whether or not Hanis will help in any way alleviate the infamous Home Affairs queues, but it is understood that the department will complete the IT system within two years.
Vodacom cautious about Africa
Vodacom, who also recently announced its financial results, said this week that further expansion into Africa would be unlikely, given the high costs of investing in cellular operators throughout the continent.
Group CEO Alan Knott-Craig, in response to questions on why the cell operator lags its major rival MTN in the African market, says most investment opportunities are now only in relatively established markets, which is an expensive exercise.
ISETT SETA`s accounting scandal
News surfaced this week of The Information Systems, Electronics and Telecommunications Technologies Sector Education and Training Authority`s (ISETT SETA`s) disastrous accounting.
About R37 million in training grants over the 2004/5 financial year could not be properly accounted for, said the Auditor-General, giving rise to suspicions over why control checks have not been in place.
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