A lack of telecoms experience could be a handicap for newly appointed Telkom CEO Leapeetswe Rapula Papi Molotsane, says Dobek Pater, an analyst with the Africa Analysis team.
Pater was commenting on the fact that while Molotsane has a strong business background, he does not have telecoms experience.
Pater says a person who makes ultimate decisions should have a broad view of the market as well as an historical perspective. He should also have knowledge of what has been happening in the international market and establish strategies on how the trends apply locally.
MyADSL also expresses caution regarding Molotsane`s lack of experience and questions his ability to change Telkom`s structure and deliver on his promises. However, it says there is a general feeling of quiet optimism among its members, who say it is encouraging that Molotsane acknowledges the high prices of telecommunications in SA.
Molotsane unconcerned
In an interview with ITWeb, Molotsane expressed no concern regarding lack of telecoms experience. He says Telkom already has experienced executives within its ranks who will be able to provide insight while he educates himself. He also emphasised his ability to work with teams to develop strategies and implement them.
Molotsane also says he brings to Telkom the ability to lead teams. Telkom chairman Nomasizi Motshotshisa agrees.
"Molotsane has the leadership style that the board believes is required to deliver on Telkom`s growth strategy and commitments in an increasingly competitive telecommunications environment," she said in a media statement.
Daniel Padiachy, a telecoms analyst at BMT-TechKnowedge, agrees on the importance of leadership. He says Molotsane will need to think out of the box to come up with objectives and strategies. He will also have to play a large role in motivating his team, he says.
Until now, Telkom has not had to deal with the competition head-on, Padiachy says. The introduction of the second national operator (SNO) will change that. He says the SNO will likely target Telkom`s customer base, further weakening its local revenue streams. This will make the need to expand further into Africa to access alternative revenue streams even more important.
Padiachy says Telkom is in a good position to manage these challenges and commends outgoing CEO Sizwe Nxasana for "leaving the company in good stead". He says Molotsane will face a greater challenge, as he will deal with direct competition in a manner Nxasana never had to.
Increased competition
Pater says some of the challenges Telkom will be faced with include diminishing revenues from voice due to the introduction of voice over Internet Protocol, continued churn from fixed-line to mobile voice call services and the emergence of additional competition in the form of the SNO and underserviced area licences. He adds there will also be increased competition in the data provision market (both value-added network service and Internet service providers), increasing competition in the wholesale market with the SNO coming online and possibly some of the mobile operators deciding to establish their own (or parts thereof) backbones.
Padiachy says Molotsane will have to make hard-hitting decisions to position Telkom in a financial strategic way and emphasises his responsibility is to Telkom shareholders.
MyADSL notes that it is particularly encouraging to see that he plans to focus on customer satisfaction and hopes he will usher in a more consumer-centric trend within Telkom. However, it is concerned his allegiance to Telkom shareholders could overshadow his ability to place the needs of the South African public at the forefront.
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