{"id":47111,"date":"2013-10-08T23:14:54","date_gmt":"2013-10-08T21:14:54","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=47111"},"modified":"2013-10-09T09:59:12","modified_gmt":"2013-10-09T07:59:12","slug":"vodacom-vs-mtn-vs-telkom-highs-and-lows-on-the-jse","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/telecommunications\/47111\/vodacom-vs-mtn-vs-telkom-highs-and-lows-on-the-jse\/","title":{"rendered":"Vodacom vs MTN vs Telkom: highs and lows on the JSE"},"content":{"rendered":"<p>South Africa&#8217;s telcos have faced a year of highs and lows on the JSE as the telecoms space in the country has seen some major happenings since the start of 2013.<\/p>\n<p>On Friday (4 October) <a title=\"Icasa\" href=\"http:\/\/businesstech.co.za\/forum\/showthread.php\/2027-ICASA-Independent-Communications-Authority-of-SA\">Icasa<\/a> gave notice of the publication of its new draft call termination regulations, outlining a glide path for the next three years to reduce the cost to telecommunications operators of terminating a call on another network.<\/p>\n<p>The new plans from Icasa include asymmetric rates for mobile operators which have a market share lower than 20% &#8211; greatly befitting <a title=\"Telkom\" href=\"http:\/\/businesstech.co.za\/forum\/showthread.php\/8232-Telkom-Mobile\">Telkom<\/a>&#8216;s mobile arm, as well as <a title=\"Cell C\" href=\"http:\/\/businesstech.co.za\/forum\/showthread.php\/1641-Cell-C\">Cell C<\/a>, but negatively impacting larger operators such as <a title=\"MTN\" href=\"http:\/\/businesstech.co.za\/forum\/showthread.php\/1640-MTN-Group\">MTN<\/a> and <a title=\"Vodacom\" href=\"http:\/\/businesstech.co.za\/forum\/showthread.php\/1639-Vodacom\">Vodacom<\/a>.<\/p>\n<div id=\"attachment_26584\" style=\"width: 610px\" class=\"wp-caption aligncenter\"><a  data-lightbox=\"post-image\" href=\"http:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2012\/11\/Telkom-shrink.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-26584\" class=\"size-full wp-image-26584\" alt=\"Telkom shrink\" src=\"http:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2012\/11\/Telkom-shrink.jpg\" width=\"600\" height=\"400\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2012\/11\/Telkom-shrink.jpg 600w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2012\/11\/Telkom-shrink-300x200.jpg 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><p id=\"caption-attachment-26584\" class=\"wp-caption-text\">Telkom<\/p><\/div>\n<h3 class=\"my-4\">Telkom&#8217;s rise<\/h3>\n<p>On Tuesday (8 October) Telkom&#8217;s share price climbed to its highest point in 2013, trading at R27.62 by close of trade on the JSE.<\/p>\n<p>A climb of over 5% came after group CFO, <a title=\"Jacques Schindehutte\" href=\"http:\/\/businesstech.co.za\/forum\/showthread.php\/3315-Jacques-Schindehutte\">Jacques\u00a0Schindehutte<\/a> acquired just under R6 million worth of the company&#8217;s shares on Wednesday (2 October), and a further 4% rise was seen after Icasa announced the new termination rate plan.<\/p>\n<p>Sentiment surrounding Telkom has taken an upbeat turn in the year so far, as CEO <a title=\"Sipho Maseko\" href=\"http:\/\/businesstech.co.za\/forum\/showthread.php\/2088-Sipho-Maseko\">Sipho Maseko<\/a> continues to address the company&#8217;s ills of the past, with promises of a turnaround in strategy and business at the telco.<\/p>\n<p>Telkom opened the year at R16.93, and to-date, the telco has seen a 63% rise in its share price, having dipped to a trade low of R11.34 during the course of year. This places Telkom&#8217;s market cap at just over R14.38 billion.<\/p>\n<div id=\"attachment_46956\" style=\"width: 610px\" class=\"wp-caption aligncenter\"><a  data-lightbox=\"post-image\" href=\"http:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2013\/10\/MTN-business.png\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-46956\" class=\"size-full wp-image-46956\" alt=\"MTN business\" src=\"http:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2013\/10\/MTN-business.png\" width=\"600\" height=\"400\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2013\/10\/MTN-business.png 600w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2013\/10\/MTN-business-300x200.png 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><p id=\"caption-attachment-46956\" class=\"wp-caption-text\">MTN<\/p><\/div>\n<h3 class=\"my-4\">MTN arena<\/h3>\n<p>South African mobile operators, MTN and Vodacom have also had an interesting year.<\/p>\n<p>MTN has been hit with a number of controversies during the course of 2013, but also a number of successes.<\/p>\n<p>A report into allegations made by Turkish network operator, <a title=\"TurkCell\" href=\"http:\/\/businesstech.co.za\/forum\/showthread.php\/1645-Turkcell\">TurkCell<\/a>, against MTN&#8217;s operations in Iran, cleared the mobile company of any wrong-doing in the matter. The case was subsequently dismissed in the USA where TurkCell had laid charges against MTN, and ultimately dropped by the Turkish operator.<\/p>\n<p>However, in the past few months, MTN has conducted a number of investigations into its own business in South Africa, and as a result, a number of executives had been dismissed.<\/p>\n<p>Thanks to the company&#8217;s strong international operations, despite a dip in local subscribers, the company has growth, and its share price has reflected that growth, accordingly.<\/p>\n<p>Following Icasa&#8217;s new termination rate announcement, MTN&#8217;s share price suffered, losing close to 6% of its value.<\/p>\n<p>MTN opened the year with a stock price of R176.99, and to-date has boosted its share price 6.87% to R188.55 &#8211; quite far off from its 52 week trade high of R202.34 &#8211; giving the telco a market cap of R354.87 billion.<\/p>\n<div id=\"attachment_23325\" style=\"width: 610px\" class=\"wp-caption aligncenter\"><a  data-lightbox=\"post-image\" href=\"http:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2012\/09\/Vodacom-growth.jpg\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-23325\" class=\"size-full wp-image-23325\" alt=\"Vodacom\" src=\"http:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2012\/09\/Vodacom-growth.jpg\" width=\"600\" height=\"400\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2012\/09\/Vodacom-growth.jpg 600w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2012\/09\/Vodacom-growth-300x200.jpg 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/a><p id=\"caption-attachment-23325\" class=\"wp-caption-text\">Vodacom<\/p><\/div>\n<h3 class=\"my-4\">Vodacom performance<\/h3>\n<p>On 1 October, Vodacom confirmed reports that it had entered into exclusive discussions to acquire 100% of South African telecoms provider, <a title=\"Neotel\" href=\"http:\/\/businesstech.co.za\/forum\/showthread.php\/2383-Neotel\">Neotel<\/a>.<\/p>\n<p>The deal, which would be the largest for Vodacom this year if it goes through, could be valued at as much as R10 billion rand ($994 million) according to a report in Bloomberg.<\/p>\n<p>Through acquiring Neotel, Vodacom would be gain access to thousands of kilometres of fibre and extremely valuable spectrum, currently held by the telco.<\/p>\n<p>This, according to Vodacom&#8217;s CEO <a title=\"Shameel Joosub\" href=\"http:\/\/businesstech.co.za\/forum\/showthread.php\/4537-Shameel-Joosub\">Shameel Joosub<\/a>, would allow Vodacom to offer fixed-line services and to boost its mobile offerings for businesses and consumers &#8211; and effectively make the company a direct competitor to Telkom.<\/p>\n<p>Vodacom is also set to gain from the windfall from a US$130 billion deal between its parent company, <a title=\"Vodafone\" href=\"http:\/\/businesstech.co.za\/forum\/showthread.php\/1662-Vodafone\">Vodafone<\/a> and its US subsidiary, Verizon Wirless, which saw the former sell its stake in the business.<\/p>\n<p>However, despite the generally positive year, on the back of the announcement that mobile termination rates would be cut further, Vodacom&#8217;s shares have sunk to R113.37.<\/p>\n<p>The company started the year at R126.20, meaning that, to-date, the company&#8217;s shares have declined by 9.64% on the JSE, giving the company a market cap of R168.69 billion.<\/p>\n<div class=\"table-responsive\"><table class=\"table\" width=\"100%\" border=\"1\" cellspacing=\"0\" cellpadding=\"5\">\n<tbody>\n<tr>\n<td valign=\"top\" bgcolor=\"#CCCCCC\"><strong>Telco<\/strong><\/td>\n<td valign=\"top\" bgcolor=\"#CCCCCC\"><strong>January share price<br \/>\n<\/strong><\/td>\n<td valign=\"top\" bgcolor=\"#CCCCCC\"><strong>52-week high<br \/>\n<\/strong><\/td>\n<td valign=\"top\" bgcolor=\"#CCCCCC\"><strong>52 week low<br \/>\n<\/strong><\/td>\n<td valign=\"top\" bgcolor=\"#CCCCCC\"><strong>8 October share price<br \/>\n<\/strong><\/td>\n<td valign=\"top\" bgcolor=\"#CCCCCC\"><strong>% change<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Telkom<\/td>\n<td>R16.93<\/td>\n<td>R27.99<\/td>\n<td>R11.34<\/td>\n<td>R27.62<\/td>\n<td><span style=\"color: #339966;\">63.14%<\/span><\/td>\n<\/tr>\n<tr>\n<td>MTN<\/td>\n<td>R176.99<\/td>\n<td>R202.34<\/td>\n<td>R149.44<\/td>\n<td>R188.55<\/td>\n<td><span style=\"color: #339966;\">6.53%<\/span><\/td>\n<\/tr>\n<tr>\n<td>Vodacom<\/td>\n<td>R126.20<\/td>\n<td>R129.88<\/td>\n<td>R98.85<\/td>\n<td>R113.37<\/td>\n<td><span style=\"color: #ff0000;\">-10.17%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<p><small>Taken from Bloomberg, 8 October 2013<\/small><\/p>\n<h3 class=\"my-4\">More on South Africa telcos<\/h3>\n<p><strong><a title=\"Permalink to Vodacom, MTN, Telkom horrifically criminal \u2013 analyst\" href=\"http:\/\/businesstech.co.za\/news\/telecommunications\/46809\/vodacom-mtn-telkom-horrifically-criminal-analyst\/\" rel=\"bookmark\">Vodacom, MTN, Telkom horrifically criminal \u2013 analyst<\/a><\/strong><\/p>\n<p><a title=\"Vodacom, Neotel confirm talks\" href=\"http:\/\/businesstech.co.za\/news\/telecommunications\/46875\/vodacom-neotel-confirm-talks\/\"><strong>Vodacom, Neotel confirm talks<\/strong><\/a><\/p>\n<p><a title=\"MTN CEO warns \u201cdestructive\u201d rivals\" href=\"http:\/\/businesstech.co.za\/news\/general\/44180\/mtn-ceo-warns-destructive-rivals\/\"><strong>MTN CEO warns \u201cdestructive\u201d rivals<\/strong><\/a><\/p>\n<p><a title=\"Telkom: time to stop subsidising Vodacom, MTN\" href=\"http:\/\/businesstech.co.za\/news\/mobile\/46389\/telkom-time-to-stop-subsidising-vodacom-mtn\/\"><strong>Telkom: time to stop subsidising Vodacom, MTN<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>South Africa&#8217;s telcos have faced a year of highs and lows on the JSE as the telecoms space in the country has seen some major happenings since the start of 2013.<\/p>\n","protected":false},"author":10,"featured_media":47112,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[26,28,261,65,27],"class_list":["post-47111","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-telecommunications","tag-headline","tag-mtn","tag-neotel","tag-telkom","tag-vodacom"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/47111","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\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=47111"}],"version-history":[{"count":10,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/47111\/revisions"}],"predecessor-version":[{"id":47370,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/47111\/revisions\/47370"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/47112"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=47111"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=47111"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=47111"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}