Fin24

Telkom picks hotel exec as chairperson

2012-11-16 16:11

Johannesburg - Telkom [JSE:TKG] said on Friday it appointed a former gaming and hotel executive as its next chairperson, following the abrupt departure of several board members.

Jabulane Mabuza, who was appointed to the board earlier this week, has been appointed as its chairperson with immediate effect, Telkom said in a statement.

The former chief executive of Tsogo Sun Holdings, Mabuza has been the chairperson of the Casino Association of South Africa and of South African Tourism, a tourism promotion group.

As Telkom's new chairperson he will have to lead the search for the its next chief executive after its current head said this month she will step down in May.

The future of the state-controlled telecom, whose shares are down 45% this year, has been thrown into doubt by tentative government plans to renationalise it and force it to push through a costly expansion of rural internet access.

Stung by declining fixed-line usage and an expensive, failed attempt at expansion into Nigeria, Telkom has struggled to boost flagging earnings.

It has launched an expensive mobile phone unit that has struggled to win customers in a market dominated by Vodafone unit Vodacom Group [JSE:VOD] and MTN Group [JSE:MTN]. The mobile business has yet to turn a profit two years after its launch.

Comments
  • justin.frittelli - 2012-11-16 16:53

    I am sure you turn this ship around Jabu! Good luck!

      lungi.mtshali.79 - 2012-11-17 10:24

      Justin, why do you think Jabu can turn Telkom around? I am genuinely interested in your reasons, it is not everyday you see positive responses on these blogs|

      patricia.spooner.1 - 2012-11-17 21:01

      Not a chance in hell!

  • Dennis - 2012-11-16 16:54

    And his vast experience in Telcos is what?

      godfried.kruger.9 - 2012-11-16 17:18

      Maybe this type of thinking was the problem. What is needed is some innovative thinking. Good Luck Jabu! Hope the new broom sweeps clean!

  • justin.frittelli - 2012-11-16 17:02

    Good luck Jabu, lets show Govt what is possible with competent people in charge of it's SOE's!

  • justin.frittelli - 2012-11-16 17:06

    It is called capable leadership Dennis, ability to appoint the right people into the right positions to turn an organization around, tough assignment but Jabu's record speaks for itself!

      garth.philpot - 2012-11-18 09:18

      But IS he capable ? the man has no ICT skills to speak of, what can he possibly know about fixing what is one of South Africa's biggest obstacles - cheap reliable communications. SA needs to look at the South Korean model. fast internet at under $20 a month, and peak calls that dont cost an arm and leg. That model saw a massive uptick in the economy - and brought down unemployment... something we sorely need in this country.

  • angela.m.vermaak - 2012-11-16 17:17

    All the very best Jabu, you WILL turn Telkom around, you are a wonderful person and whilst I was in the employ of Southern Sun, you were an amazing Exec Manager to me......I respect you immensely! JABU MABUZA FOR PRESIDENT OF SOUTH AFRICA !

  • Rigvdm - 2012-11-16 18:04

    Coming out of the gambling business he might be the best man for the job

  • joe.smit.549 - 2012-11-16 18:56

    Good. So if we don't get through, we can go on holiday.

  • AfricanBlueSpaceChrist - 2012-11-16 20:47

    GOOD LUCK JABU GET THE SPIRIT BACK INTO TELKOM.

  • freddy.vanwijk - 2012-11-17 07:52

    LOL.

  • bharath.bhumi - 2012-11-17 11:23

    Let's go ahead 3 years into the future. Telkom did not succeed because they did NOT do what is currently considered impossible...... they did not take away customers from the monopoloies that are Vodacom and MTN. In a MATURE market you absolutely TAKE your customers from the competition. You do not (only) try to create new customers where there are "none". In three years time, Telkom did not create the headway, FIRST (before the two monopolies), into the technology horizon that marks the boundary inside of which all telecomms companies are CURRENTLY playing. Telkom does not create the R&D divisions needed in the company and does not hire external innovation companies who develop the software and hardware needed to offer "never before packaged products" that cosumers crave before they crave it. In this regard they CAN learn from FNB, (after all Sizwe Nxasana is an ex-Telkom CEO).Think of where the banking sector was three years back and now look at it. Telkom did not partner, FIRST (before the other two monopolies), with world technology PLAYERS like Google, Samsung, Apple, media content providers and any and all virtual world players. In a David and two Goliaths battle 1) you don't win by not throwing stones, 2) you don't select soft stones and 3) (you make bloody well sure) you aim it where it causes maximum damage to the competition. If you want to make friends, go onto Facebook, back in the real world business is a slaughter house. Get used to it.

  • flysouth - 2012-11-17 13:18

    Way to go, Telscum! Obviously hotels have lots of phones, so I guess that means this person is suitably qualified!

  • zaaristotle - 2012-11-17 22:50

    Although I do not doubt his abilities as a ceo, I always have doubts about non-industry players. And this goes for all types of companies, airline, banks, hospitality etc.).

  • braamc - 2012-11-18 06:35

    14 day Telkom bed and breakfast with you wait for your ASDL line, first 50 customers only.

  • chrisfourielipman - 2012-11-19 07:32

    I wonder who is taking a gamble here, him or Telkom? Sadly neither would win!!! http://www.facebook.com/groups/telkomadsl/

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