| Summary: It is being said
that when allowing competition for Telkom, two entrants will be allowed. If so, this is to
be welcomed. Advantages:
(a) There is less chance of an informal, comfortable,market sharing arrangement coming
into existence if there are three,rather than two competitors. The result is that the
market will be more dynamic, grow more rapidly and offer better and cheaper services.
(b) There are two significant starting points for international players.that may want to
enter the local market, Transtel and Eskom. Both have significant infrastructure.
(c) There will another two opportunities for black empowerment firms to obtain a stake in
this strategic sector.
Having three rather than two fixed line networks may
detract somewhat from Telkom's value to investors, but the long-term benefits for the
sector and the economy will outweigh this disadvantage. |
