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Telkom Has Ample Opportunities for Mobile Network Expansion

Abdullahi Kafayat

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Telkom mobile network expansion opportunities: Telkom, in partnership with Vodafone, was the first to provide mobile telecommunication services in South Africa through the establishment of Vodacom in 1994.

The telecommunication’s product and service offering has evolved materially over the last decade to include fixed line and mobile services. Along with these came data and information technology services. 

Telkom Mobile Network Expansion Opportunities

According to Lunga Siyo, CEO of Telkom’s consumer business, interactions with TechCentral, Telkom Mobile has cemented its position as a long-term player in the telecommunications market in South Africa.

Telkom Mobile Network Expansion Opportunities

He also highlighted that consumers keep buying the company’s products because it satisfies their needs. This makes their brand relevant and has cemented their place in the market. 

He said, “Our growth demonstrates that customers like what they are buying from us. It also demonstrates brand relevance, because if your brand is not relevant, if you don’t have the right propositions in the market, customers will buy [your products], use them and you’ll never see them again.

“We have moved from fourth place to third place, and we are firmly [cemented] in the market now.” 

Telkom Mobile Positive Impacts In South Africa

Telkom’s telecommunications network is also the largest in South Africa, with over 169,000 km of copper and fiber. It is managed through a division called Openserve, which is a valuable asset of the group.

Openserve is the only infrastructure provider with a regional network touching remote towns across South Africa. Therefore, most telecommunication companies are reliant on their infrastructure to deliver services to customers. 

Also Read: Telkom now has over 20 million mobile subscribers

It is also the only network with full network redundancy – limiting connection interruptions. The network has a clear competitive advantage and positions the group well for future growth in fiber-related services. It has also been a key growth enabler for Telkom’s mobile business.

Telkom also provides information technology (IT) services to the group and external customers through BCX. 

BCX is one of South Africa’s largest IT companies. It provides services such as converged communications, IT infrastructure management, cloud computing, and cybersecurity.

There are also lots of opportunities to create value from Telkom’s data centers, of which there are 10 in South Africa, with over 6,000 m2 of combined floor space. 

Looking Ahead: Telkom, A Fertile Ground For Mobile Network Expansion Opportunities

Although Telkom management does not disclose utilization rates, it is glaring that there is ample capacity for growth. 

Converting these assets to providing a vendor-neutral and open-access service model could lead to substantially higher future returns.

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Abdullahi Kafayat
Abdullahi Kafayat

Abdullahi Kafayat is an enthusiastic writer interested in the tech world. She's a graduate of Obafemi Awolowo University and has a BSc in Chemistry. You can reach her at Kafayatabdullahi17@gmail.com.

Articles: 515

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