ADSL on its last legs in South Africa

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  By   Daniel Puchert Partially state-owned telecommunications company Telkom announced in its financial results for the year ending 31 March 2025 that its ADSL subscribers had more than halved to under 30,000. According to the company’s operational data, ADSL lines decreased from 64,959 in March 2024 to 29,770. This 54.2% decline highlights that the legacy broadband technology is slowly approaching the end of the road. Telkom’s ADSL business peaked at the end of March 2016 with 1.01 million subscribers — two years after fibre upstart Vumatel  broke ground in Parkhurst . What followed was a sharp decline in Telkom ADSL subscribers. Customers connected to its copper networks decreased by more than 500,000 over the next four years. This was partly driven by Telkom itself, which began actively switching off its copper network in some neighbourhoods. If it did not have fibre in the area, it would offer a “fixed line lookalike” wireless service that ran over its cellular ...

The BEE in South Africa

This is an interesting story about BEE in South Africa. BEE is a move which was introduced by the government  to bring the business to a balance, whereby both blacks and whites benefit from the Government tenders.  The blacks believed that it was benefiting the whites since apartheid era.  Blacks are registering their own companies bid for the tenders and are given the business to do the projects.

A classic one happened in one of the government departments.   The department in one of the provinces in S Africa.  The director of education and his son were working together to award tenders to the local people. Their strategy was to award small money tenders to the people and the  big ones they have to make plans and award to themselves. This would seem to all people  in local city to fell that all is being done fairly.

In so doing they have to create a company which will be in someone’s name  and use that person to do all the business as if it’s his but yet the original owners are them.  Likewise the son used his friend ‘s names to create a company and employed him as a manager. He had the rights to attend all tendering meetings and putting the last signature when the deals are made. This was done successfully but his friend didn’t know much about what was going on.
The company started running smoothly. His friend as the manager was given the benefit of a free house  to stay , no rental payments the company was catering for that. They bought him a new Mercedes Benz to use and a R20 000 salary every month.  His life was all covered basic needs and work related needs. He enjoyed the life and enjoyed the success of the company, attending meetings with big fishes and seeing himself imaging as the winner of these big tenders.
The properties  and material things were registered in the director’s family. He felt on top of the world. One day someone who was suspicious asked him about his job and asked how much was he being payee.  He revealed it to the person and that person told him to go find out in whose names was this company registered.  He investigated and  found out that all the paper work for the company was done in his name. So the company actually belonged to him. The reality was he didn’t know.
He discovered that they used him to play the front role so with advice of this clever friend he opted to revolt. He had a belief that he is going to take everything and be rich. So greedily he ordered the friends father and the friend for a meeting. In the meeting he explained that he is taking over everything and they don’t have anything in the company. They were so surprised but they took their time and decided to give him his company but cut every activity that the company was involved in.
Likewise the father said its ok you can take the company but all the benefits we had given you are over. Move out of the house surrender our car and move back to your location place. We are going to give you your company registration papers but you don’t have a single tender to run because we are subletting our ongoing tender work to a subsidiary company.
He was left with papers only in his hands. No more meetings with big fishes nor his company getting tenders.  He started his miserable life again all because he did not do his homework well. Even if he had asked for a raise in salary and remain manager they were going to do it.  That’s how life goes tenders and bee deals

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