At the Africa Tech Festival 2024 in Cape Town, Simo Mkhize, Telkom’s Chief Commercial Officer, shared his insights on how the telecom group has transformed into a broadband player by capitalising on its data-focused infrastructure, affordable devices, and innovative AI-driven strategies.
Reflecting on Telkom’s pivotal shift in the past decade, Mkhize explained how the company’s network was built for the data-driven era, setting it apart from its competitors.
“At the turn of the decade, when 8ta became Telkom Mobile, it marked the beginning of data taking over as the dominant mode of communication and consumption,” said Mkhize. “We positioned ourselves early to drive data adoption and accelerate customers toward data services.
“With the launch of 4G and LTE, we solidified our leadership in broadband, powered by our data-centric network and access to spectrum that allowed us to deliver services more efficiently than competitors.”
Mkhize stated how Telkom’s strong connection to customers’ homes, having been a staple provider of landline services for generations, helped smooth the transition to broadband and mobile data.
“Our customers were already familiar with Telkom as their trusted home service provider, so it was natural for them to embrace our mobile services too,” he added.
But it’s not just about technology, Telkom’s commitment to value for customers has been key.
Mkhize elaborated, “We are the best value network, providing quality services at affordable prices. It’s this combination of value, accessibility, and network quality that sets us apart.”
Looking ahead, Telkom is preparing for a seamless transition from 4G to 5G, with a keen eye on providing affordable devices that open doors to the digital world.
Mkhize noted, “We’ve launched a low-cost 4G device under R300, which will provide customers with an entry point into the digital ecosystem, including services like WhatsApp, now more than just a social tool but a gateway to digital services.”
The company’s OneTelkom vision, which seeks to unify its diverse assets: from mobile to fibre, IT services, and data centres, positions Telkom to accelerate its digital transformation efforts.
Mkhize explained, “OneTelkom allows us to leverage our strengths across business units to provide customers with a seamless experience. The power of having a mobile network, fibre infrastructure, IT services, and data centres all working together creates a competitive advantage that no one else in the market can offer.”
On the other hand, artificial Intelligence (AI) and machine learning are central to Telkom’s future strategy, enabling the company to hyper-personalise services for its customers.
“AI helps us unlock a holistic view of our customers across all business units, allowing us to deliver services in real-time. Whether it’s topping up data while watching a movie or offering tailored promotions, AI allows us to serve our customers with precision,” Mkhize concluded.
Telkom’s vision for the future is clear: harnessing the power of its infrastructure, data, and advanced technologies to deliver a superior, affordable, and connected experience for all.
Lunga Siyo, CEO of Telkom’s consumer business. Picture: SUPPLIED
Telkom’s consumer business, which houses Telkom Mobile, has the potential to make its mark in the highly competitive telecommunications industry by offering services in neglected rural areas.
Led by CEO Lunga Siyo, the consumer business — with its strategic pivot towards infrastructure — is poised for unprecedented growth.
The strategy leverages Telkom’s extensive infrastructure capabilities to meet the demand for flexible, customer-orientated services. In that regard, the company aims to double down on its mobile, fibre, data centre, marine cables and satellite infrastructure provision businesses.
The consumer business has a significant advantage with Openserve’s 170,000km fibre network, which reaches most parts of the country.
Mobile broadband subscribers increased 9.5% to 12.7-million in the 2024 financial year, representing 62.3% of Telkom Mobile’s total 20.4-million subscriber base. The company already has 7,738 mobile integrated sites, of which 66% have fibre backhaul.
Siyo has a unique opportunity to deploy prepaid fibre services to rural consumers, villages and areas neglected by Vodacom and MTN. Through prepaid fibre, areas such as Phokeng in the North West, Ngcobo in the Eastern Cape and Elim in Limpopo are fertile grounds for Telkom to cultivate and attract new customers.
By leveraging its extensive infrastructure capabilities, Siyo can position the company ahead of its competitors in these regions. However, he must use the fibre backhaul to deliver prepaid fibre in SA’s rural areas and villages.
Another advantage is that the fibre network’s wide reach will be crucial in the battle for 5G dominance in SA. Telkom already has 465 active 5G sites.
The evolution of prepaid and fibre services is central to Telkom’s strategy. By offering prepaid fixed broadband options starting at R99 for seven days, it is meeting customer needs for flexibility while expanding its market share.
The division aims to grow its top-line revenue to R32bn within five years. Mobile revenue is projected to hit R27bn and mobile earnings before interest, tax, depreciation and amortisation (ebitda) is expected to reach R7.7bn. Its growth strategy includes spectrum acquisition, regionalisation, data science, digital transformation and an efficient distribution network.
The company is seeing rewards from its personalised pricing plans such as Mo’Nice, which accounted for more than 50% of monthly prepaid revenue. To cater to the micro-purchase behaviour prevalent in the prepaid segment, Telkom has expanded its offering with propositions orientated to the youth and mass market, including TikTok and WhatsApp bundles.
Telkom is also exploring opportunities beyond connectivity. Initiatives such as Telkom Plus, the launch of Prime Video and plans for further digital content offerings, such as Netflix and Showmax, are poised to seize the over-the-top opportunity.
Expansion into e-commerce, home security, financial services, and healthcare emphasises Telkom’s ambition to diversify its revenue streams.