{"id":33406,"date":"2013-03-12T07:14:48","date_gmt":"2013-03-12T05:14:48","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=33406"},"modified":"2013-03-12T08:28:26","modified_gmt":"2013-03-12T06:28:26","slug":"beware-of-telkom-mobile-analyst","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/mobile\/33406\/beware-of-telkom-mobile-analyst\/","title":{"rendered":"Beware Telkom the parastatal"},"content":{"rendered":"

Cell C<\/a> is not the only firm who is looking at a larger slice of the mobile pie in South Africa, and causing a potential headache for MTN<\/a> and Vodacom<\/a>, an investment analyst has suggested.<\/p>\n

Last week, chief investment officer at\u00a0First Avenue Investment Management<\/a>,\u00a0Hlelo Giyose<\/a>\u00a0opined that the most recent results from Vodacom\u00a0and\u00a0MTN showed that the companies are starting to feel the impact of\u00a0Cell C\u2018s competitive stance against them.<\/p>\n

\u201cWhen a new entrant comes in and is willing to spend as much money as it takes \u2013 that distorts the profitability you had before, they start to compete for that level of profit.<\/p>\n

\u201cCell C has actually done a great thing to foster competition in this market,\u201d Giyose said.<\/p>\n

An analyst at financial services group PSG Konsult<\/a> however, also put a case forward for Telkom mobile or 8ta<\/a> as it is also known.<\/p>\n

He says that Telkom is essentially being run as a parastatal which means it has the ability to launch products into the market at competitive prices.<\/p>\n

He notes that for a company to post an operating revenue of R33 billion, yet not be able to \u201cmake any money\u201d is an indicator of how the company is currently operating.<\/p>\n

He said that if Telkom continues to be run like a parastatal, without any real concern over the profitability, and continues to announce competitive prices, \u201cthey may yet win market share”.<\/p>\n

Government holds the majority shares in Telkom through its own 39.8% stake in the company and the 10.5% held by the\u00a0Public Investment Corporation<\/a>.<\/p>\n

For the six months ended September 2012, Telkom pointed to active mobile subscribers of 1.495 million with a blended ARPU of R68.62.<\/p>\n

Cell C currently claims a 14% market share in SA, while Vodacom\u2019s share is over 52% with\u00a030.6 million customers, and MTN, with\u00a025.4 million subscribers, has an approximate share of 33%.<\/p>\n

More on SA mobile operators<\/h3>\n

Vodacom, MTN feel Cell C\u2019s punches: investor<\/strong><\/a><\/p>\n

MTN CEO warns Cell C on price war<\/strong><\/a><\/p>\n

Lower mobile prices sustainable: Alan Knott-Craig<\/strong><\/a><\/p>\n

MTN lifts revenue, ups dividend<\/strong><\/a><\/p>\n

Prices Plummet in mobile price war<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Cell C is not the only competitor who is breathing down the neck of MTN and Vodacom, an investment analyst has suggested.<\/p>\n","protected":false},"author":9,"featured_media":7507,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[42,2160,26,28,27],"class_list":["post-33406","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mobile","tag-cell-c","tag-first-avenue-investment-management","tag-headline","tag-mtn","tag-vodacom"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/33406","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=33406"}],"version-history":[{"count":13,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/33406\/revisions"}],"predecessor-version":[{"id":33413,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/33406\/revisions\/33413"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/7507"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=33406"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=33406"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=33406"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}