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Will Telkom’s 50% share of Vodacom be affected by Neotel?
 
Not really.
 
‘Neotel will compete for wireless broadband, but this has never been a major revenue generator anyway. Analysts have often said that Telkom's 50% stake in Vodacom accounts for most of the fixed-line operator's market capitalisation’ (No terrors for Telkom, McLeod, Financial Mail, 5 May 2007).
 
In other words, Vodacom, ‘the jewel in Telkom’s crown,’ will largely be left unaffected by Neotel.
 
Do Telkom shareholders need to panic?
 
Not yet, judgement day for Telkom is coming but it’s predicted that it won’t be soon.
 
‘Neotel has a long way to go before it poses a threat to Telkom's core revenues’ (No terrors for Telkom, McLeod, Financial Mail, 5 May 2007).
 
In other words, Telkom’s shareholders don’t need to lose sleep over Neotel. Or do they?

ADSL South Africa (Broadband South Africa) is convinced that thousands of fed-up consumers will pitch up to play on Neotel’s side as soon as they get the chance. The Telkom giant might be crippled sooner than expected.

adslsa

 

 

 

 

 

 

 

 

 

 

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