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Commission wants heftier Telkom fine

The Competition Commission appeals the Competition Tribunal's decision to fine Telkom SA only R449 million.

Read time 3min 20sec

The international ICT market was very quiet last week, apart from the launch of Apple's iPhone 5 and a handful of small acquisitions.

At home, the Competition Commission's move to appeal the Telkom fine and the excellent financial results from EOH stole much of the local ICT media space.

Key local news

* Excellent year-end figures from EOH, with revenue up 50% and profit up 50.3%.
* A positive trading update from Gijima (but still forecasting a loss).
* A negative trading update from Digicore.
* The R40 million sell-off by ConvergeNet Holdings of its remaining 15.05% interest in Future Cell to Pepkor.
* The Competition Commission is appealing the Competition Tribunal's decision to fine Telkom SA only R449 million, arguing that the figure should be much higher.
* The announcement that the assets of African Cellular Towers have been sold for $2.8 million, following the liquidation of the company earlier this year.
* The resignation of Lazarus Zim, chairman of Telkom SA.

Key African news

* Telecom Namibia has entered into a partnership with New Telco SA, represented by Jasco Company-locations Solutions, to deliver four international POPs connected to the WACS undersea cable.

Key international news

Public IT cloud services spending will approach $100 billion in 2016, a CAGR of 26.4%, five times that of the IT industry, says IDC.

Paul Booth, MD, Global Research Partners

* Akamai bought FactSoft, a Web content acceleration software provider.
* The $350 million acquisition by Infosys of Lodestone, a Swiss management consultancy.
* NCR purchased Transoft International, a cash cost optimisation software company.
* The launch of the iPhone 5.
* Quarterly losses from Palo Alto.
* The appointments of Stephen Hooley as CEO of DST Systems and Steve Milligan as CEO of Western Digital (as of 2.1.13).
* The retirements of John Coyne, CEO of Western Digital (as of 2.1.13), and Thomas McDonnell, CEO of DST Systems (as of 31.12.12, but stays on as chairman).
* A planned IPO in India of Bharti Infratel, the tower unit of Bharti Airtel, in a move that could raise $1 billion.

Look out for:

* International:
* Sistema (Russia) buying a $3 billion stake in Aircel (India).
* The fate of Kodak following a failure to sell-off its patents for a fee expected to fund creditors.
* Africa:
* An expansion in Africa by Celpay, which already has a presence in the DRC, Zambia and Zimbabwe.
* South Africa:
* Further developments re Business Connexion and Telkom SA.

Research results and predictions

* According to IDC, worldwide IT spending will grow 5.9% this year at constant currency, slightly down on last year's 7%.
* Gartner predicts free apps will account for almost 90% of total mobile app store downloads in 2012.
* Public IT cloud services spending will approach $100 billion in 2016, a CAGR of 26.4%, five times that of the IT industry, says IDC.
* According to IDC, the software storage market grew only 0.9% in Q2 to reach $3.36 billion.
* Gartner says spending on security infrastructure is expected to rise 8.4% this year to reach $60 billion.

Stock market changes

* JSE All share index: Up 2.3% (highest-ever weekend close)
* Nasdaq: Up 1.5% (highest weekend close for over a decade)
* Top SA share movements: ConvergeNet Holdings (-9.7%), EOH (+10.5%), Huge Group (-10%), Muvoni (+200%), Poynting (-14.4%), SecureData (+8%), Sekunjalo (+8.3% and Zaptronix (-50%)

Final word

Forbes Africa recently published its 'Top 25 South African listed companies', a rating based on market capitalisation, revenue, profit and assets. From a technology perspective, there were no IT companies and two telecommunications companies; however, many on the list were conglomerates that had an ICT portfolio.
* MTN (at number two)
* Remgro (11)
* Vodacom (13)
* Naspers (14)
* Bidvest (19)

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