Fixed-line telecommunications operator Telkom says one of its key priorities this year will be delivery of accessible and value-adding ICT functionality, specifically tailored to SA's growing small and medium enterprises (SMEs).
The company says it is best placed to offer true convergence to SMEs, considering its ability to offer all the components of fixed, data, cloud, IT and mobile capabilities allows it to provide innovative solutions that best serve the SME sector.
Telkom stores now offer dedicated business desks for SME customers, created to specialise in analysing the ICT needs of small to medium business customers and ensuring suitable product choices from a range of mobile and fixed voice and data offerings. Computer hardware - such as PCs and laptops, office automation and security systems - are also available to business customers, says Telkom.
Thami Magazi, Telkom's managing executive for the small and medium business services division, says: "Telkom recognises the vital role it can play in supporting the development of the SME sector. As a leading ICT player in the country, the products we develop will go a long way in enhancing efforts aimed at bringing the second economy into the first.
"Our aim is to provide valuable product offerings and solutions designed specifically for small and medium businesses as they seek to be sustainable and competitive."
Magazi explains Telkom would like to partner with SMEs as their ICT provider to "help transcend their business approaches from mere survivalist small-scale operations".
"I believe small and medium business owners with the appropriate, cost-effective and scalable ICT setup in place are best positioned to achieve this." Magazi says.
New revenue streams
Telkom is trimming costs and increasing efficiencies through an organisation-wide restructuring process. Last year, during the first phase of this process, Telkom shed 302 management-level staff through voluntary severance packages and voluntary retirement packages - exceeding its stated target of 223 retrenchments.
Labour unions said towards the end of last year that they are bracing themselves for more retrenchments within the telecoms sector, including at Telkom, and these are expected to be announced during the first quarter of this year.
While Telkom seeks to cut costs and increase efficiencies across its operations, it is also seeking to create new earnings streams to defend against dwindling fixed-line numbers and voice revenues.
It has identified convergence as one of its key strategic initiatives in building a sustainable future for Telkom - a trend industry analysts say is becoming increasingly common in the telecoms sector, as operators try to reinvent themselves and unlock new earnings streams.
Telkom is buying IT outsourcing company Business Connexion (BCX), for R2.6 billion. Adding BCX to its fold would enable Telkom to become a fully-fledged ICT service provider.
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