Privatization: A Comparative Analysis of MTS (Canada) and Telkom (South Africa)
Overview
This paper examines the privatization of public telecommunications services in Canada and South Africa through case studies of MTS and Telkom. The analysis argues that despite initial promises of efficiency and cost reduction, privatization has failed to serve the public interest and that governments should reconsider alternatives to privatization in delivering public services.
What this research paper covers
- Introduction: Historical context of privatization as a solution to public service delivery problems
- Case Study 1: Manitoba Telephone System privatization in Canada (1996)
- Case Study 2: Telkom Kenya privatization (2007) and comparative analysis with South African context
- Critical evaluation: Market competition failures and labor market impacts
- Conclusion: Arguments for reassessing privatization policy and exploring alternative approaches
Preview
Privatization: A Comparative Analysis of MTS (Canada) and
Author Name(s), First M. Last, Omit Titles and Degrees
Institutional Affiliation(s)
Privatization: A Comparative Analysis of MTS (Canada) and Telkom (South Africa)
Globalization and the growing population have increased demand for public services. Around the world, governments are struggling to meet this demand. At the onset of the 20th century, privatization was fronted as a solution by a section of scholars and politicians to current predicaments in the efficient and reliable delivery of public services. For reasons including cost reduction and risk transfer, it has been widely accepted that the private sector can offer these services more efficiently than the government. In recent years, however, governments are beginning to de-privatize some of these services. Based on this observation, along with other scholarly materials, trends are showing that privatization is no longer the solution. There is a need for governments to re-assess the future of public services.
McQuaig (2019) alludes that through privatization that has skyrocketed in recent decades, we have been left increasingly dominated by the forces of private greed. In 1996, for instance, Canada's progressive Conservative government under Gary Filmon approved the privatization of the Manitoba Telephone System. This was after he reaffirmed in a previous interview that it would not be sold. In 2007, a similar move was adopted by the then Kenyan government is the privatization of Telkom Kenya. Despite both companies being the oldest in the sector in their respective countries, they have been overtaken by new players in the market.