Reuters blames Telkom

ADSL South Africa (Broadband South Africa), 14 January 2007

Well-known media and information provider Reuters made it clear that Telkom is standing in the way of foreign investment in South Africa.

Tom Glocer, CEO of Reuters, made it clear during a brief stop in South Africa that ‘Telkom’s continued high telecommunications prices and low-quality bandwidth are deterring it from ploughing more money into SA’ (Telkom prices hold SA back – Reuters, Rose, 17 January 2007). In other words, Telkom is once again standing in the way of job creation in this country. Not that an increase in foreign investment will necessarily lead to more jobs because a monster called ‘jobless growth’ is also doing the rounds. Foreign investment will however lead us faster to a situation where more jobs can be created.

Is Telkom really that bad?

Well, decide for yourself. Do you think for one that it’s not too bad to pay 440 times more than you should pay for voice and data calls in South Africa? This is according to research done by well known Economist and Telecoms Consultant, Paul Cole.

Glocer also made it clear that South Africa has a lot going for it in comparison to other emerging markets, in terms of ‘stronger infrastructure, a well-run economy and sophisticated financial markets,’ but that ‘the telecommunications costs remained a glaring weakness’ (Telkom prices hold SA back – Reuters, Rose, 17 January 2007). When the CEO of one of the Top 100 companies listed on the London Stock Exchange says something like this, South Africans really need to wake up to reality before it’s too late. Although this is not all Glocer said about Telkom we shall stop here because we’re sure you have seen it all by now.

Despite all the proof that’s available to support Glocer’s take on things Telkom still had the audacity to deny it and rather wants us to believe that they are “committed to the process of consistently adjusting its pricing model in order to make telecommunications more affordable and accessible to business as well as the broader South African public” (Telkom prices hold SA back – Reuters, Rose, 17 January 2007). If we are not willing to stand up and fight injustices perpetrated by the likes of Telkom and others in this country, we can kiss the future of our children goodbye because nothing decent will remain for their enjoyment. You don’t have to be a secondclass citizen living under constant abuse and assault, join us in our fight for a better future. By not doing your part you’re just as guilty as the ones perpetrated the injustices.

ADSL South Africa (Broadband South Africa) welcomes Glocer’s truthful take on telecoms in South Africa and would like to thank him for his contribution. May Reuters help to spread the message far and wide.