Telkom’s Fiber Fiasco: A Case of Regulatory Overreach?
Telkom’s plans to list its fiber subsidiary, Openserve, have been put on hold due to market conditions that are deemed "not conducive" to such a transaction. The CEO, Serame Taukobong, claims that the company is focusing on "getting the basics right" before looking at outside opportunities. But is this just a convenient excuse to avoid a potentially disastrous listing?
Meanwhile, Taukobong is singing a different tune when it comes to call termination rates proposed by the Independent Communications Authority of South Africa (ICASA). He claims that it’s "too early" to reduce the rates, citing the impact on smaller mobile operators. But is this just a veiled attempt to protect Telkom’s dominance in the market?
And what about the looming shutdown of 2G and 3G networks? Taukobong claims that government must consider the mobile ecosystem in South Africa before making such a drastic move. But is this just a case of regulatory overreach? Shouldn’t the focus be on driving innovation and competition, rather than protecting the interests of legacy operators?
The truth is, Telkom’s fiber fiasco is just a symptom of a larger problem. The company’s outdated business model and lack of innovation have left it struggling to compete in a rapidly changing market. And rather than adapting to these changes, Telkom is simply trying to hold on to its shrinking market share.
So, what’s the real reason for Telkom’s decision to put the listing of Openserve on hold? Is it really about market conditions, or is it just a convenient excuse to avoid a potentially disastrous listing? One thing is certain: Telkom’s fiber fiasco is just a symptom of a larger problem that needs to be addressed.
