South African Telecommunications: History and Prospects
Arguments against and for Telkom are an example of the larger controversial issue relating to various government-owned establishments in the Southern African countries. Privatization of assets implies weakened political authority and collective bargaining control, which is manifested by investors who in theory are encouraged to cut expenses and enhance efficiency. Although Telkom's projected return is relatively low, even with short-range interest rates, its claim of expanded control over African markets is appealing. With this possibility in mind, multinationals have undertaken to enhance strategic control mechanisms and rigid separation from both government and labor markets. Thus, it is important to note that ANC-administered organizations must fulfill the requirements of two incompatible factors—systematized labor (which has power over economic stability) and the international investment society (which serves as a feasible competitive group).
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