Telkom today said that its commitment to an aggressive broadband strategy has produced positive results for its fixed line business, paving the way for Telkom’s journey towards true fixed mobile convergence and entry into the content aggregation market.
Telkom CEO Nombulelo Moholi said that there is a burgeoning appetite for data which resulted in strong growth in broadband services.
Moholi explained that Telkom’s current DSL penetration (excluding wholesale DSL) stands at only 19.5% of the fixed-line base allowing an opportunity for Telkom to offset declines in voice revenues by growing broadband penetration.
Telkom said that it will focus its strategy on growing and defending profitable revenues in its consumer business by increasing broadband penetration in South Africa.
“We are enabling our target offering through high speeds and capped and uncapped offerings which consistently provide greater value for the same price.”
Telkom anticipates a further shift of its analogue connections to broadband as the confidence in Telkom’s most recent broadband offerings grow.
“The drive towards full convergence has also bolstered a significant interest in the acquisition of fixed-lines as fixed lines form an imperative part of convergence,” Telkom said.
“Free broadband trials are cementing the belief that fixed-line broadband is unparalleled in terms of Quality of Service and that mobile broadband complements rather than replaces Telkom’s ADSL service offers.”
“Going forward Telkom will also simplify and streamline product offerings and communication. Our new product catalogue will be launched in November 2011,” said Ms Moholi.