Hi, I have been looking at Telkom shares for a while now but don't really believe there is any future value in the company. With the unbundling of Vodacom as well as the costs for broadband etc. reducing, is it worth buying Telko Anyone has any evidence or comments to back a BUY of TKG?
I wouldn't write off this company. Although their fixed line rental may not grow, it is a strong and assured revenue provider and they can match or beat any of the broadband service providers best offerings if they so wish due to the size and extent of their infrastructure. One will have to wait and see how their new business model develops and how effective they are at improving efficiencies and cutting out the fat (refer last CEO report). I am keeping it on my watchlist. At about R33.00 I think it is fairly valued with potential to improve in the future.
I agree that TKG has a ability to out-offer on broadband... i am just waiting for this now, its the only reason we didnt move to MWEB or the others that are now offering uncapped adsl... i want to see what TKG's move is... I only had very good, stable service for our broadband and dont want to go anywhere else... maybe they come up with some cool offer... i hope so! I think if they make broadband much cheaper, they will make more money in SA. more people will get it, i think there are still lots without broadband and this could grow... I am also keen to hear their strategy going forward withou vodacom - which was quite a good earner for them.
I moved into a new property at the beginning of December and have been waiting since then for a DSL line - in the meantime I am using 3G. I received a letter from Telkom about 2 weeks ago informing me that due to insufficient infrustructure, there is no possibility of getting a DSL line in the foreseeable future. If Telkom are unable to provide a fairly basic service in this day and age, I can't see a great future for them.
hmmmm... thanx. I personally don't believe that TKG can offer any further with respect to broadband, they move too slowly. MWEB are probably around 10 - 50% more expensive than most other BB providers yet they compete exceptionally well with Telkom. Most people out there are not tech savvy enough to make the choices to jump!