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Telkom will not be ‘going crazy’ about 5G, says CEO

Samuel Mungadze
By Samuel Mungadze, Africa editor
Johannesburg, 30 Aug 2022
Serame Taukobong, Telkom Group chief executive officer.
Serame Taukobong, Telkom Group chief executive officer.

As the race to deploy 5G hots up, Telkom is not “going to go crazy aggressive” like the other operators, as the important issue for the telephony group is to make sure its 4G ecosystem remains strong.

This is according to Serame Taukobong, Telkom Group CEO, who says while the rollout of 5G is high on the group’s agenda, the majority of South Africans are still dependent on the 4G network.

Taukobong says the company has been quietly laying the groundwork for its 5G network fibre backhaul, and for Telkom, the success of 5G is “where it can make the most impact”.

Meanwhile, rivals Vodacom and MTN have been stepping up their 5G deployments since they acquired high-demand spectrum earlier this year.

In June, MTN South Africa, with over 1 000 active 5G sites across the country, said it’s targeting at least 25% of the country’s population to have 5G coverage by the end of 2022.

The following month, Vodacom revealed that this year it will triple its 5G footprint in the Western Cape, as the operator expands connectivity in urban, deep rural areas and townships.

The Telkom boss is the latest telco executive to tip longer-than-expected 5G rollouts in SA, after Vodacom Group CEO Shameel Joosub cautioned it will take years before the fifth-generation technology reaches the same levels of the 4G networks.

Taukobong addressed the annual Southern Africa Telecommunication Networks and Applications Conference (SATNAC), in George, yesterday.

This year’s event is being attended by industry leaders − including CEOs, academics and government − to discuss innovation and trends in the sector, with a key focus on the human experience, and the role of technology in shaping society.

Yesterday at the event, bridging the gap of digital inclusion, 5G and spectrum came under the spotlight, as participants discussed the importance of digital solutions to tackle South African challenges.

Hidden truth

Taukobong gave the telephony group’s position on 5G, saying: “Most people think Telkom is behind; now the interesting thing on 5G is that the more wireless you go, the more wire you need. So all the 5G rollouts are going to need significant fibre backhaul, and Telkom has really performed well in fibre and making sure all those base stations are provided with fibre backhaul because what 5G is going to command is a lot of backhauls, and we are primed and ready for that.

“We are not going to go crazy aggressive like everybody else. I think the important part for us is to make sure our 4G ecosystem remains very strong, and obviously with 5G what people don’t understand is, the whole device ecosystem still has not arrived.

“So, you want a 5G phone? It costs R25K, so it's not for everybody. But our focus, for example, is we are now doing a pilot in Umlazi, where we are testing 5G in schools, clinics and hospitals, and a police station. So we’ve picked an area where we are going to rollout 5G there and show how 5G can really help people who do not have access to connectivity.

“5G policy plays an important role in bridging South Africa’s digital divide. In order to effectively unlock our digital economy, we need to consider the entire ecosystem and how it will be shaped and supported by the policies and regulations we implement.

“As a group, we have been quietly laying the groundwork for our 5G network fibre backhaul. With the largest fibre network in the country and recent allocation of spectrum, we are well-positioned to become an enabler of a connected society, so that all South Africans can be a part of the digital ecosystem.”

Dr Charley Lewis, ICASA acting chairperson.
Dr Charley Lewis, ICASA acting chairperson.

Easy does it

During a panel discussion on 5G, the conference heard that a sustainable and efficient 5G network needs to be underpinned by a competitive landscape where the sharing of resources is encouraged.

Liza Zouabi, Telkom group executive of pricing and competition regulation, commented: “5G is an incredible offering, but we can’t look at it in the same way we’ve considered other technological advancements. While diversification of services is important for the consumer, it makes sense to invest in greater consolidation between industry players on an operational level, so that we can improve efficiencies for the market as a whole.”

Concurring, Jacob Munodawafa, CEO of the Southern Africa Telecommunications Association, added: “In the race to deploy this next-generation solution, we’ve found that industry players have invested in new infrastructure in areas where this infrastructure already existed – leading to over-servicing.

“If operators were allowed to combine their resources, there could be more capital available to deploy services in underserved areas and maximise connectivity for all consumers.”

For telecoms regulator, the Independent Communications Authority of SA, its duty is to manage the sector in an inclusive and sustainable way, said Dr Charley Lewis, ICASA acting chairperson.

He explained: “During the COVID-19 pandemic, we allowed operators to share the much-needed spectrum so they could deploy their 5G networks. With the right policies in place, we could again authorise passive and active infrastructure sharing – for the benefit of all stakeholders.”

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