Browsing: Alan Knott-Craig

R5m. That’s how much Vodacom paid its former CEO, Alan Knott-Craig, to restrain him from working for or advising competitors in the telecommunications industry. He was paid this money after he retired. Included in the amount, which is disclosed in Vodacom’s 2010 annual financial report, released this week, is payment to Knott-Craig for any advice and assistance requested by his successor, Pieter Uys.

I know that this article is going shock you, but not in the way you expect, so buckle up. I have oversimplified the piece, but its essence is as true as you could wish for. The other day, I found a Telkom — in those days Posts & Telecommunications — internal “newspaper” called Postel, dated December 1982. The front page article — coincidentally written by myself at the time — described a 40% cut in international data communication tariffs based on X.75 packet-switching. Before the 40% cut, it cost, in today’s money, more than R10 000 to send 1MB of data. After the 40% cut, it cost only R6 000/MB — a bargain, with demand exceeding supply