Johnnic Communications (Johncom) says it saw a R93 million windfall from its sale of MTN shares, but about 40% of its holding in the company is tied up by debt and employee obligations.
Internet service providers have complained to regulators that Telkom is engaging in unfair and anti-competitive business practices that are undermining competition in Internet provision. The complaint could explain why only Telkom is offering ADSL.
As the government struggles to patch together a competitor to Telkom and set deadlines to assess the possibility of a fourth cellular operator, research house Gartner is advising investors to steer clear of the South African market.
Nigeria has proved to be quite a challenge for MTN and the country is still far from won. But initial success there has whet MTN`s appetite for Africa, leading to the near-acquisition of operations in 14 other countries.
Anyone using or selling least-cost telephone equipment has been invited to join a legal battle in which Telkom wants the service declared illegal. However, those who join could be forced to help bear legal costs.
Telkom`s JSE debut got off to a shaky start this morning, listing at R28 a share, more than 16% lower than the bottom range initially envisaged by the government. The first trade, at R29, was more positive, but from there it moved steadily downwards.
The ministry of communications has missed a self-imposed deadline to invite to the table those interested in being part of SA`s second telephone operator. The delay, however, should be short and a June decision is still on the cards.
With the situation in Iraq currently quiet, nothing stands in the way of Telkom`s listing, due Tuesday. But this may be the calm before the storm, depending on how heavily discounted Khulisa shares are allocated.
Telkom`s legal battle against those offering companies a way to save money on telephone bills resumed this week. With no end in sight, it seems Telkom has settled with Vodacom, on favourable terms, while still pursuing MTN and others.
State-owned signal distributor Sentech has bought the 30% stake of Internet service provider Infosat it didn't own from a group of employees, as it gears up to use its controversial "multimedia" telecommunications licence.
SA has mostly itself to blame for high Internet costs, a lack of fast access and Telkom`s continued dominance, the International Telecommunications Users Group believes. But the solution is simple - open up the market.
The next step in putting together a competitor to Telkom is due next week if the government and regulators can settle a dispute that has delayed it up to now. Foreign partners are said to be queuing up.