South Africans are a cynical lot. When it comes to telecommunications, that cynicism is often justified. Too often, SA operators are big on promises and short on delivery. But Cell C’s new strategy may indeed shake up SA broadband. Cell C CEO Lars Reichelt is a dynamic and colourful character. His colleagues at the cellular network operator say he works harder than anyone they’ve met, often pulling stints late into the night and insisting that his team be available to work similarly long hours.
Browsing: Duncan McLeod
Sentech is dysfunctional. That’s the gloomy picture painted by the state-owned company’s board in a presentation it was meant to give to parliament last week. But the company was prevented from delivering the presentation, entitled “Strategic Plan 2010 – 2011” because it failed to supply supporting documentation, needed by members of parliament ahead of time, before the scheduled meeting.
With more than half a dozen SA operators rolling out their own national networks, consolidation in SA’s telecommunications industry looks inevitable. There’s a chance Cell C and Dimension Data could be the ones to kick it off. Didata division Internet Solutions looks a bit like the odd man out these days. The converged service provider, which remains a powerful force in the corporate market, is the only big player in its space that doesn’t have its own significant investment in telecoms infrastructure.
It’s long been government’s desire to bridge the digital divide, to get communications technology in the hands of the rural poor. But its every attempt to address the problem has failed. Now commercial operators may achieve what government couldn’t. The late Ivy Matsepe-Casaburri, the former communications minister, had her heart in the right place. She genuinely wanted people in underserviced areas to get access to the latest communications technology.
The apparent collapse of pay-TV operator Super 5 Media is unfortunate. It means less chance of the kind of rivalry that fosters innovation and drives down prices. At the top end of the market, however, competition to DStv may come from a less obvious source. Super 5 Media, formerly known as Telkom Media, was cursed almost from the start. When Telkom, under former CEO Reuben September, decided to end its investment, the writing was already on the wall.
SA’s cellular communications market is about to get a big shake-up as two players, one new, Telkom Mobile, and one reinvigorated, Cell C, get ready to go toe to toe with each other and incumbents MTN and Vodacom. SA’s smallest mobile operator, Cell C, has never had an easy time of it. Launched a decade ago after a particularly troubled birth, the operator has faced an uphill battle against dominant incumbents MTN and Vodacom.
Deputy home affairs minister Malusi Gigaba wants to introduce legislation that will compel Internet service providers to block pornographic material online. It’s all in the name of protecting the children, of course. According to a Sapa wire report last week, Gigaba intends “fast-tracking the passage of a yet-to-be-drafted law that will compel In- ternet service providers to filter content pro- vided to users to ensure it does not contain any pornography”.
When it comes to the latest handsets, consumers want to know more about the software they’re buying than the hardware specifications of the phone itself. This is driving big competitive changes in the smartphone market and reshaping an industry. A few years ago, buying a cellphone was a relatively trivial exercise.
When I arrived at Jeremy Ord’s office last Friday — the day after news that the group he cofounded and now chairs, Dimension Data, was being bought out for R24,4bn by a Japanese corporate giant — he was looking relaxed. Having just flown back from London that morning, Ord appeared a little tired but entirely laid-back in jeans, takkies and an old jumper. The TV in his office, tuned in to the British Open, had the attention of the 54- year-old golfing and cycling enthusiast.
Reuben September’s decision to step down early as CEO of Telkom wasn’t unexpected. All eyes are now on the board, which must appoint his successor. Will it make the right choice? Or will the decision be political? It was probably inevitable that September didn’t stick around at Telkom until his con- tract ended in November. When the board elected not to renew his contract, the long- serving Telkom executive took it badly, say company insiders.