Telkom CFO and Telkom Mobile acting head Jacques Schindehutte said that it is not a good strategy to try to compete head-on against Vodacom and MTN in the mobile voice market, and that 8ta’s future lies in data.
According to Schindehutte, 8ta is building a robust mobile data network, and is crafting a niche for itself where it can bring a superior offering to their subscribers.
Schindehutte said that Telkom’s mobile data strategy links to the company’s ability to offload mobile data to their fixed-line network.
The Telkom CFO added that their plans will allow mobile customers (hence 8ta subscribers) to experience Telkom’s high-speed fixed-line broadband network.
This strategy from 8ta will make it very competitive in the mobile data market. Mobile data networks are under strain because of the massive growth in mobile data usage, and with the prolonged battle for additional spectrum and the high cost to boost mobile network capacity, other solutions are explored.
The added capacity for the mobile operator comes at virtually no cost, and the improved experience and even potential cost savings to the subscriber is significant.
Telkom is uniquely positioned to integrate their mobile and fixed-line broadband networks. Such converged fixed-mobile broadband offerings will, as Schindehutte said, differentiate 8ta and potentially position the company as the preferred mobile data provider in the country.
8ta was contacted for more details about their data plans, but the company did not respond by the time of publication.