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Telecommunications in Africa$
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Eli M. Noam

Print publication date: 1999

Print ISBN-13: 9780195102017

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780195102017.001.0001

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South African Telecommunications: History and Prospects

South African Telecommunications: History and Prospects

Chapter:
(p.205) 12 South African Telecommunications: History and Prospects
Source:
Telecommunications in Africa
Author(s):

Robert B. Horwitz

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780195102017.003.0013

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).

Keywords:   Telkom, South Africa, privatization, collective bargaining, political authority, strategic control

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