Is CEO compensation in South Africa out of control?

It has been revealed in an investigation done by accountants firm COMPUTUS, not only that CEO compensation in South Africa is out of control, but that CEOs operating in the telecoms industry in South Africa are on average earning R11.5 million each in remuneration per annum.

The worker is worthy of his pay…

Yes, the worker is worthy of his pay, but it’s clear that CEO compensation in South Africa, especially the compensation of CEOs in the telecoms industry, is way out of control when compared to the ‘peanuts’ the Average Joes have to be satisfied with.

If one considers the above-mentioned figure of R11.5 million then one can understand why many Average Joes get hot under the collar when they learn of this. To give our fellow Average Joes some perspective, while we at ADSL South Africa (Broadband South Africa) are not up to date with the salaries average workers are getting paid in the telecoms sector, we can tell you with confidence that it’s possible to employ at least 115 people as Bank Tellers at one of our local banks for R11.5 million per annum! We’re sure that many will agree with us when we say that CEO compensation of a million or even R2 million per annum is acceptable from a South African point of view, but AVERAGE compensation in the vicinity of R11.5 million per annum per CEO is a bit steep...

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Vox Telecom: New and innovative products and services

Vox Telecom’s share price currently trades at about 34c per share, but whether this places a fair value on the group’s worth is debatable. It is no secret that Vox and many other players in the telecoms market are facing tough times, but Vox is clearly not taking any of it by sitting down if one considers all the new products and services that they’ve launched or plan to launch in the months to come.

New and innovative products and services…

Vox has launched and is planning to launch many new and innovative products and services...

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ADSL Broadband: Is a Telkom 10Mbps ADSL speed upgrade imminent?

One cannot help to ask the above question after it has emerged that many Telkom ADSL subscribers are already enjoying ADSL Broadband at speeds of up to 10Mbps. Telkom denies that they’ve started an ADSL speed upgrade, and has so far largely refused to comment on rumours, but it’s clear that the chances of a 10Mbps ADSL speed upgrade in the immediate future have increased tenfold...

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Mobile Broadband: Vodacom announces more rate cuts

Vodacom is heating up the Mobile Broadband market quite nicely, especially if one considers the ample rate cuts Vodacom has announced in terms of the Broadband Advanced packages they plan to ‘re-introduce’ later this month.

Broadband Advanced rate cuts of up to 36%…

Vodacom has recently announced that they are not only planning to ‘re-introduce’ their Broadband Advanced packages (500MB, 1GB and 2GB) later this month, but also at rates that are up to 36% lower than before.

In fact, the Broadband Advanced rate cuts planned by Vodacom will under cut MTN’s Mobile Broadband rates (assuming that MTN’s rates stay the same until month end), and although not significantly, it should force MTN to consider cutting their Mobile Broadband rates as well. This is despite the fact that MTN still offers better value for money when one considers MTN’s overall value proposition...

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ADSL Broadband: Web Africa cuts ADSL prices

ADSL Broadband price cuts are always welcomed and it’s not different this time around. Web Africa has recently dropped their per GB ADSL Broadband prices to very reasonable levels.

R10 per GB ADSL…

It seems that Web Africa has taken note of calls to join the broadband price cut party in a more splendid manner, especially after the first salvo of ADSL price cuts by them earlier this year triggered criticism.

The above is especially true if one considers that they have dropped their per GB ADSL prices to as low as R10 through the unveiling of their ‘Titan DSL Specials’ recently. In addition, Web Africa has decided to drop the ADSL top-up rate to R15 per GB for their data and complete subscribers. The ADSL top-up rate refers to the rate one pays per GB if one wishes to top up one’s ADSL Broadband bandwidth. This normally happens when one’s regular/fixed monthly bandwidth allocation or ADSL Cap is depleted or reached...

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Skaap is down and out

VoIP Service Provider Skaap is down and out after less than two years in business, despite aggressive marketing campaigns up to the end. ADSL South Africa (Broadband South Africa) has made this shocking discovery earlier this week in a MyBroadband article.

ADSL South Africa (Broadband South Africa) reported in September 2006 on ‘Skaap’s sheer brilliance and drive in creating a low cost call environment’ (Skaap: Sheer brilliance and drive, 19 September 2006). We also reported on Skaap’s eagerness to take Telkom head-on in the market place and quoted the MD of Skaap, Brett Magrath, as saying that interest... “in the Skaap service has been phenomenal and is rapidly growing as people realize that they don’t necessarily require an ADSL line to make cheap international calls. Our rate of sign-ups more than double on a weekly basis. We are simply responding to the great demand for cheaper international calls that exists in this country” (Skaap: Sheer brilliance and drive, 19 September 2006).

What happened?

Details on why Skaap closed remains sketchy because Skaap representatives not only failed to comment on the reasons for failure, but also seem to have different ideas on whether Skaap is closed or not when MyBroadband contacted them earlier this week. Skaap representative, Keri Davies, however commented that Skaap was “working on new things” when MyBroadband contacted them again. Rumours that the company has failed to refund users who still had funds in their accounts will not sit well with consumers in South Africa. “Working on new things” is not going to restore the public’s trust in you if these rumours are true.

The Skaap case serves as an excellent example of how easily things can change in the SA telecoms market, especially when you lose the trust and support of The Average Joes. A lesson Telkom is currently learning the hard way.

The ADSL South Africa Team

New Broadband Service Launched

Our loyal supporters and all new visitors should welcome the service we have just launched on the main ADSL South Africa site (www.adslsouthafrica.co.za).

The service is called the ‘One Stop Broadband Request Service’. If you are interested in getting broadband, would like to upgrade to broadband or just want to go for better pricing or switch to another ISP, then you will find the service very useful. You only have to submit your details ONCE. After this, you will receive multiple broadband quotes from various ISPs.

Be sure to visit the following link for more details:

http://www.adslsouthafrica.co.za/One%20Stop%20Broadband%20Request%20Service.htm

The ADSL South Africa Team