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How SBC (AT&T) Pillaged South Africa's Economy

Posted by kdawson on from the privatization-trumping-liberalization dept.

Kifoth writes "For 8 years, SBC and Telekom Malaysia controlled South Africa's only telecommunications company, Telkom. Telkom had a government granted monopoly in order for it to connect the large parts of South Africa that had been neglected under apartheid. Instead of helping, SBC abused their position and raised Telkom's prices to be among the highest in the world. The billions they made here ultimately went to fund their AT&T merger. From the article: 'SBC, described as "congenitally litigious", is said to have played a major role in the failure of South Africa's telecoms policy to develop a competitive telephone service. Under SBC's control Telkom not only failed to meet its roll-out obligations but behaved "as a tax on industry and a drag on economic growth."'"

5 of 270 comments (clear)

  1. Hmm... by bigstrat2003 · · Score: 5, Funny
    Wow, a large company with a history of doing ridiculous things purely for its own profit, does a ridiculous thing purely for its own profit in a young foreign market, where it's no doubt easier to get away with this stuff.

    Seriously, I didn't see this one coming.

    --
    "16MB (fuck off, MiB fascists)" - The Mighty Buzzard
  2. so basically by Anonymous Coward · · Score: 4, Funny

    they hate black people.

  3. Pillaged is Such a Harsh Word by PhyrricVictory · · Score: 4, Funny

    Pillaged is such a harsh word. I prefer the phrases "shareholder value" and "market economy".

  4. Re:Then Blame the SA Government by PinkyGigglebrain · · Score: 4, Funny

    A rattlesnake will bite you because it is afraid and feeling threatened. Business will screw you over because of greed.

    Please do not insult rattlesnakes by comparing them to telco execs. There is no comparison.

  5. Re:Monopolies are bad by pete6677 · · Score: 2, Funny

    Anyone who thinks publicly owned monopolies are not a bad thing has never been subjected to public transportation in Chicago.