Telkom adapts to change

Telkom recognises business models in the ICT sector are changing at an increased intensity. This is forcing telecommunications operators to develop new business models, says acting CEO Reuben September.

Speaking at the Satnac conference, taking place in Mauritius this week, September said Telkom wants to grow its business through integrating fixed and mobile services and geographical expansion.

The potential transactions between Telkom and the Vodafone Group, as well as the MTN Group, must be seen as a clear indication that Telkom is taking the need for a new business model seriously, he said.

Earlier this month, Telkom issued a cautionary saying it was in discussions with the Vodafone Group, suggesting it is seeking to sell its 50% stake in Vodacom.

MTN also issued a cautionary stating it is in discussions with Telkom, which could result in the sale of certain of Telkom's assets.

September said no decisions had been reached since those cautionary notices were issued.

"In adherence to the rules under which we operate, I cannot divulge any further information, including timelines, for the purpose of corporate action," he said.

September said customer demand, technology advances and a changing regulatory environment are driving change in ICT business models. He also noted that mobile operators are under the same pressure experienced by fixed-line operators.

"Recognising these challenges, I believe it's important for African telecoms operators to note that they are in Africa and need to react differently, developing business models that address Africa's needs."

September noted that Africa has low technology levels and, as such, operators have a chance to quickly deploy newer technologies without the hindrance of legacy infrastructures. It is also important for operators to recognise the next big wave of revenue will be generated by data and Internet connectivity, he noted.