Financial Mail

Toby Shapshak: Pattern Recognitio­n

- Shapshak is editor and publisher of Stuff magazine (stuff.co.za). Follow him on Twitter: @shapshak

officer and BT’s regional director before that, alone knows more about managing a modern telecom company than all the combined head honchos from Solidarity, the Communicat­ions Workers Union and the Communicat­ions Union, who sought the court interdict.

Turning any business around is hard enough, especially when it’s a state-owned behemoth with a declining monopoly on voice calls, something that is now so commoditis­ed that cellular operators offer all-youcan-eat packages for reasonable rates.

Maseko, remarkably, seemed to have the backing of Telkom’s largest shareholde­r, government, when he announced the job cuts last month.

Telkom has too high a ratio of staff to customers — despite arguments that it needs such a large workforce for the size of the country — and is already, as Maseko says, “being attacked from all flanks”.

Cellular is stealing Telkom’s voice and data customers, while new fibre players are eating Telkom’s lunch by dealing directly with irate residents’ associatio­ns who want decent broadband and have given up on Telkom’s delayed fibre plans. Meanwhile, there’s the delicious irony of perpetual offender Telkom taking Vodacom to Icasa over its planned purchase of Neotel. Delaying tactics, much?

As we’ve seen with the platinum industry, the scorchedea­rth strategy used by the Associatio­n of Mineworker­s & Constructi­on Union might’ve resulted in the increases it was seeking, but this was at the expense of the industry and the companies employing its members.

It’s bad enough that government doesn’t understand that telecoms are the lifeblood in this new Internet-enabled era of global e-commerce. Now we have telecom companies being dictated to by aggrieved minorities in a way that is not constructi­ve for anyone’s long-term interests.

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