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Is growth in Telkom’s fixed-line segment sustainable? No.
According to September ‘…the fixed-line segment faced significant operational challenges as a result of increased competition, fixed to mobile substitution, deregulation and rapidly changing business models within the ICT sector’ (Telkom profits down, MyBroadband, 19 November 2007). In other words, it is highly unlikely that Telkom will be able to sustain growth in the fixed-line segment because of more than one factor detrimental to the fixed-line segment. |
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