Johannesburg, 07 Jun 2005
Telkom`s future strategy includes moving to an IP-based network as well as doing business in Africa.
The fixed-line network operator is preparing for competition when the second national operator is introduced, which Telkom CEO Sizwe Nxasana expects by the end of the year.
Speaking at the release of the group`s annual results yesterday, Nxasana said Telkom intended to move to a predominantly IP-based network, giving it the ability to offer converged services such as voice, data and video services.
The group also plans to expand its value-added network (VAN), IT and Internet services provider (ISP) services to win a larger market share and become the leading ISP and VAN provider in SA.
This is why, he says, Telkom is aggressively rolling out its ADSL services.
Other plans include becoming a wholesale provider of choice and continuing to benefit from the 50% shareholding in Vodacom, as management believes the mobile market will remain vibrant with good growth prospects.
"We are willing to buy more of Vodacom should the other shareholders want to sell," Nxasana says. "But they also want to increase their shareholding, so we are in a happy medium."
Vodacom`s other shareholders are VenFin and VodaFone.
Nxasana says Telkom is also looking to do business in Africa, exploring particularly Nigeria, the Democratic Republic of Congo and Kenya with Vodacom.
"Although it is clear that significant potential for growth exists in Africa, Telkom will evaluate any acquisitive opportunities as they arise, using stringent criteria particularly in terms of their value-accretive prospects."
Nxasana, who earlier announced his intention to step down when his contract expires at the end of the year, says the Telkom board is in the process of seeking a successor, with both internal and external candidates being considered.
He says an announcement on the board`s progress, and possibly a short list, is expected within weeks.
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