Telkom
From My Broadband Wiki
| Founded: | |
|---|---|
| Headquarters: | Pretoria |
| Key People: | Kaushik Patel, Reuben September, Lulu Letlape |
| Products: | ADSL, Land Line services |
| Revenue: | R51 619 million |
| Operating Profit: | R14 469 million |
| Net Profit: | |
| Employees: | 23 000 |
| Website: | http://www.telkom.co.za |
Telkom is currently the only provider of public switched communications services in South Africa, providing fixed-line voice, data, directory services and wireless data business services.
The Group has had operating revenue of R47.6 billion ($7.7 billion) profit for the year attributable to the equity holders of Telkom of R9.1 billion ($1.4 billion) and cash flow from operating activities of R9.5 billion ($1.5 billion) in the year ended March 31, 2006 and had total assets of R57.5 billion ($9.4 billion) and equity attributable to the equity holders of Telkom of R29.1 billion ($4.7 billion) as of March 31, 2006.
As of March 31, 2006, Telkom had approximately 4.7 million telephone access lines in service and 99.9% of telephone access lines were connected to digital exchanges. The Group offers business, residential and payphone customers a wide range of services and products, including:
- fixed-line voice services, including subscriptions and connections services, local, long distance, fixed-to-mobile and international voice services, interconnection and hubbing communications services, international voice over internet protocol services, subscription based value-added voice services and customer premises equipment sales;
- fixed-line data services, including domestic and international data transmission services, such as point-to-point leased lines, ADSL services and packet-based services, managed data networking services and internet access and related information technology services;
- directory and wireless data services through our TDS Directory Operations (Pty) Limited and Swiftnet subsidiaries, respectively; and
- mobile communications services, including voice services, data services and value-added services and handset sales through its 50% join venture, Vodacom.
Contents |
History
Established in 1991, South Africa’s incumbent telco Telkom SA is also the continent’s largest communications services provider in terms of operating revenue and assets. It provides fixed-line voice and data services, Internet, e-commerce, satellite, broadcasting and mobile communications services (through its 50 percent-owned Vodacom joint venture) to business, residential and payphone customers.
Telkom has strategic equity partnerships with SBC of the USA and Telecom Malaysia, which jointly have a 30 percent shareholding in the company. The wholly-owned ISP subsidiary, TelkomInternet started operations in mid-2000 and in April 2001, merged with Telkom’s formerly independent ISP, Intekom.
In return for the exclusivity of its Telecoms license until 2002, Telkom was committed to meeting a set of 16 licensing targets. If Telkom met 90 percent of these targets, it would qualify for a sixth year of exclusivity. However, Telkom opted out of taking further year’s monopoly and the government proceeded with the liberalization process from May 2002.
On 7 May 2002, Telkom's five-year telecoms monopoly came to an end, and the company faces competition in the domestic Internet and international telephony markets. The Government has committed to ending Telkom’s PSTN monopoly by December 2003.
In 2002, Telkom was South Africa’s largest listed industrial company and was majority owned by the South African government (67 percent), while its strategic partners SBC Communications and Telekom Malaysia held 18 percent and 12 percent respectively and the black empowerment company Ucingo Investments owned the remaining 3 percent.
Profits
| TELKOM PROFITS | ||
|---|---|---|
| YEAR | OPERATING REVENUE | OPERATING PROFIT |
| 2007 | R51.619 Billion | R14.469 Billion |
| 2006 | R47.625 Billion | R14.677 Billion |
| 2005 | R43.117 Billion | R11.222 Billion |
| 2004 | R40.795 Billion | R9.088 Billion |
| 2003 | R37.507 Billion | R6.514 Billion |
| 2002 | R34.197 Billion | R4.191 Billion |
Biggest Telkom Shareholders
| TELKOM SHAREHOLDERS | ||
|---|---|---|
| Shareholder | Percentage | Description |
| Government | 38% | The Government of the Republic of South Africa is the largest shareholder in Telkom. The Government holds the A class share. |
| PIC | 15.7% | The Public Investment Corporation (PIC), an investment management company wholly owned by the Government, invests funds on behalf of the public sector entities. The PIC holds 8.6% of Telkom's issued shares and the class B share acquired from Thintana Communications LLC in November 2004. In addition the PIC also holds 7.1% of Telkom's issued shares acquired in the market. |
| Elephant Consortium | 5.6% | The Elephant Consortium is a Black Economic Empowerment group, which through Newshelf 772(Pty) Ltd, holds shares in Telkom which it acquired from the PIC. |
| Telkom Subsidiaries | 4.3% | Rossal No 65 (Pty) Ltd holds 2.3% (12,687,521 shares) which was purchased for the Telkom Conditional Share Plan. Acajou Investments (Pty) Ltd holds 2.0% (10,849,058 shares) which was purchased for purposes other than the Telkom Conditional Share Plan. |
| Freefloat | 36.4% | Included in the freefloat are 9,408,452 shares held by 85,432 retail shareholders representing 1.7% of Telkom's issued shares. |
Joint Venture
Vodacom Group
- 50% joint venture Shareholding
- Vodacom Group (Pty) Ltd is a leading mobile communications company in South Africa, providing mobile communications services to 23.5 million customers in South Africa, Tanzania, Lesotho, the DRC and Mozambique. Vodacom has an estimated market share of 58% in South Africa
Subsidiaries
TDS Directory Operations
- 64.9% Shareholding
- TDS Directory Operations (Pty) Limited provides Yellow and White page directory services, an electronic directory services, 10118 "The Talking Yellow Pages", and an online web directory service.
Swiftnet
- 100% Shareholding
- Swiftnet (Pty) Ltd trades under the name FastNet Wireless Services. FastNet provides synchronous wireless access on Telkom's X.25 network, Saponet-P, to its customer base. Services include retail credit card and cheque terminal verification, telemetry, security and fleet management.
Board of Directors
Non-executive chairman
- Shirley Lue Arnold was appointed to the Board on November 1 2006 as Chairman and non-executive director of the Company.
Executive director
- Papi Molotsane was appointed to the Board and as chief executive officer in September 2005.
Non-executive directors
- Dumisani Tabata was appointed to the Board on September 20, 2004.
- Yekani Tenza was appointed to the Board on September 20, 2004.
- Thabo Mosololi was appointed to the Board on October 15, 2004.
- Lazarus Zim was appointed to the Board on October 15, 2004.
- Marius Mostert was appointed to the Board on September 20, 2004.
- Tshepo Mahloele was appointed to the Board on November 29, 2004.
- Brahm du Plessis (46) was appointed to the Board on December 2, 2004.
- Sibusiso Luthuli was appointed to the Board on July 29, 2005.
- Keitumetse Matthews was appointed to the Board on 19 June, 2006.
