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I almost completely agree with something posted on commentry.co.za, I don't check there often, and I generally expect to disagree with their opinion, but not this one:
If we really want to "fix" the Telkom problem, we need radical free market reforms. Here's what needs to happen:
- Government should sell all its remaining shares in Telkom. That way, they won't have a financial incentive to protect Telkom and ensure that their profits remain as high as possible.
- Deregulate the market. Abolish the ICASA licensing process. Anyone who has the capital and is willing to take on the risk should be allowed to start their own communications company, regardless of whether they want to sell cellular, landline, or internet connections.
- Exercise the AT&T option: break up Telkom into about five different companies. The most obvious approach would be to divide them into a long-distance operator, three local operators (centered on Durban, Gauteng and the Western Cape) and a company that controls the SAT-3 submarine cable.
I don't think 'radical free market reforms' are an answer to every underperforming parastatal (and I don't think Laurence does either), I think parastatals can perform a vital role. I would advocate a particularist approach.
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