As the Independent Communications Authority of SA (ICASA) announces the timeframe for the final stages of the second national operator (SNO) process, DataPro, a leading ISP, candidly claims that Telkom "will retain its vice-like grip on the telecommunications market because it has matured from operating as a parastatal to acting like a true, efficiency-driven corporate".
This is according to Douglas Reed, MD of premier Internet service provider (ISP), DataPro. "While Telkom has long been lambasted as a slow-moving, conservative parastatal-like corporate, we have noticed a distinct change in their business attitude. In our dealings over the past 12 months we have noticed a clear move towards a more entrepreneurial mindset in the course of them conducting business.
"If you consider this against the backdrop of their market strength - which is still undisputed - the SNO is going to have a tough time stealing any significant market share. The Telkom share price, since its listing on Nasdaq, has also being relatively impressive, attesting to the fact that the global economy takes a bullish view of the former parastatal."
"Too many people are assuming the new SNO will give Telkom a run for its money. This is unlikely to happen as Telkom has quietly moved its goalposts. Telkom has the infrastructure, the staff expertise, the local and global positioning, and the financial wherewithal to ensure that it retains its leadership role.
"Right now - and I believe for at least the next five to eight years - it will be like getting an eight-year-old boy to run a 100 metre dash, or a marathon, against a 20-something top-class athlete.
"The bottom line is that nothing much is going to change in the telecommunications landscape in the medium-term. The government has clearly left this process too late. Telkom has pulled far ahead of its wannabe competitors," said Reed.
"Businesses have got into the habit of `Telkom-bashing` without realising that the company has really lifted its levels of service and has matured into a company that has embraced the need for entrepreneurial flair. We see it in our day-to-day dealings with them; but it is not fashionable, it would seem, to admit this publicly," quipped Reed.
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