By: Kim Coward

Kim Coward — Fri, 16 Oct 2009 09:56:52 +0000

MTN’s CEO is a smooth talking wolf. I was at the hearings and everything that he said was shot down at some time or other. also I believe he made a mockery of the committee when asked if he had a meeting with Vodacom since the first meeting in 1993. and he was warned of the consequences of his answer. He did not answer the question directly. but described a piece of paper his collegue had pushed in front of him which had the word no on it. No one recognised that he had not answered the question directly. sSecondly that in 1999 was when both MTN and Vodacom had pushed up the MTR rates exactly the same it was not designed to push Cell C out. because Cell C only came into the market in 2001. But the truth is that Cell C was in litigation with ICASA for 2 years or else they would have been in the market in 1999. So it is clear to me the timing of the large MTR hike was to designed to cripple Cell C.
Furthermore the commitee did not ask the question to both Vodacom and MTN if they colluded with Telkom seperatly who at the time owned some 50% of Vodacom. also the CEO of MTN said that all the profit of the cell phone network side of MTN group profits of some R8 billion was reinvested in SA infrastructure. According to the MTN group they spent some R28 bilion on Capex which includes infrastucture throughout Africa. which I find hard to believe as a communications engineer, that he would spend 30% of capex on an existing profitable market and spend 70% on establishing a market throught some 8 different new countries which is less than 10% per country . the numbers don’t add up. Also MTN has made an average of 40% pretax profit year on year which is unheard of worldwide. To me it is sheer profiteering bordering on anti competitivness. this is why they want talks behind closed doors. they have plenty to hide from the public.

By: Ed Runhar

Ed Runhar — Fri, 16 Oct 2009 09:00:31 +0000

There is a ten thousand pound gorilla in the room and no one can see it? HOW??? “Closed door talks”? This means that they have something to hide. This also insinuates that the figures they publish in their financial results are not either not accurate or misrepresentation of the actual business. How can this be allowed to go on? ICASA is full of lawyers and with absolutely no expertise in corporate finance. Little wonder these telcos are dancing circles around them (ICASA).

Comments on: MTN seeks closed-door talks with parliament

By: Kim Coward

By: Ed Runhar