I think there is a board and broad problem here:
A lot of people support the idea of nationalizing part of Telkom's network in order to achieve an NBN or to compel a division between wholesale and retail in absolute terms as two separate companies. I don't believe this is necessary or advisable if sight is had of the ECA. Physical network components and infrastructure must be available for non-discriminatory leasing (facilities leasing) and the ownership of the network is a steady/safe investment with really limited returns - the money side of things should come from the ECNS side of business not the ECN side; a division between network and service is what drives the legislation. I don't believe that a firm that operates just an ECN is diversified enough to operate nationally and satisfy shareholders, whilst a firm which wishes to be a bellwether and blue chip and open to securing financing needs the asset base which an electronic communications network is. I don't see why our ICT industry isn't moving towards a situation where the licence system indicates who may own infrastructure and that the infrastructure forms networks and services are run on top of the networks; actually I do see why, firms are greedy and the DoC is incompetent and ICASA incapacitated.
Telkom knows how important convergence is and it knows the problems it has in dealing with the retail side of things and so has had to deal with internal conflicts about branding and unbranding products and so forth. The whole 8ta thing has both a retail aspect - as a brand of Telkom - and a dividing Telkom up aspect - 8ta "merging" or "being sold off" having been bizarrely suggested.
If Telkom can successfully operate as a corporate entity which:
(1) owns large parts of the "national backbone network" (which a nebulous term I am using to refer to interconnected fiber and related infrastructure in Southern Africa) which it sells on a wholesale basis to ECNS licence holders and interconnects at various points on both a transit and peering basis with other ECN entities - one of which may be a fully state owned entity, and others fully private - and
(2) operates and resells commodity Internet and voice services to customers as a service provider; and
(3) provides various Internet services to consumers, businesses and industry participants as a converged service provider;
(4) has dominance in fixed line last mile infrastructure but leases same on a raw basis and is able to lease where it doesn't own the lines and additionally makes product offerings to other service providers ; and
(5) owns and operates data centres and related ICT infrastructure
then a valuable share offering exists and monopolistic abuses (which are necessitated by large corporate and government stupidity) can be ended.
As I see it Telkom should operate the following brands:
8ta: A lower ARPU consumer focused brand offering voice text and data primarily over GSM technology (2nd and 3rd generation) but also where applicable in prepaid POTS service - on a if the line exists and is low cost to service basis. As well as possibly DECT based rollout in high density, low funding areas. It makes no sense for 8ta to offer high ARPU products such as the unlimited voice calls product - 8ta also shouldn't be in the ADSL market, low ARPU landlines should be migrated to 8ta and if line maintenance is an issue moved over to GSM based solutions. To be honest I am not even sure that 8ta should offer post-paid products.
DO Broadband: A higher ARPU consumer focused brand offering voice (including VoIP) text and data exclusively over fixed line infrastructure (copper/fiber), WiMAX and LTE focusing on converged triple play offerings. Current Telkom ADSL customers will be moved onto DO Broadband which will include closer and so on. Line rental for POTS and ADSL will be fully merged - if you aren't wanting ADSL as a home customer you get put onto 8ta. Retaining a Pinnacle customer rating system is probably not a bad idea. I would also introduce product offerings where customers can have a monthly fixed cost and a rewards system in place.
Telkom Business: A business orientated brand offering business services, VoIP, mobile and fixed voice, text and data using all of Telkom's technologies to businesses (so unlike 8ta including LTE).
Telkom Enterprise Solutions: Much like Telkom Business but focusing on two very different markets - big business (enterprises) and tech conscious small enterprises (SMMEs)- generally bigger volumes or more specialized arrangements and also used as a brand name for building TESPlex a nice carrier hotel and actual hotel and business center. (I'd like an office on the penthouse suit floor)
Telkom Internet and Wholesale: Not so much a brand as the ultimate holder of the Telkom name - permission to use a phrase like "powered by Telkom" and so forth rests with Telkom Wholesale (so SANREN could be "Powered by Telkom"), Wholesale is also responsible for providing ISPs with "naked DSL" at a price which addresses the LAD problem reasonably.
Telkom Mobile: A high ARPU consumer (business and private) mobility orientated provider with high volume and unlimited voice and text and data products available. International roaming and domestic universal coverage (so even if 8ta gets moved off the MTN deal). Mobile products are available through the other brands but Telkom Mobile as a brand is focused on jetsetting. Having things like Telkom Mobile airport lounges and so on. Automatically a Pinnacle customer.
Telkom Direct Stores: Pretty much as it currently operates but I would expand the product offerings with hire purchase (or whatever the exact details are) and allow sales with commission for non-Telkom products - I'd like to sign up for a DOBroadband 20Mbs line together with an Afrihost 5Mbs uncapped offering and a warranty bearing router on 24 months. Telkom Direct stores should also run a technician dispatching service and so on (only Telkom certified).
I'd phase out the current call centre system and have each brand doing customer relations according to their customer type, nobody without training in computing would be allowed near the DO Broadband call centre - introduce something similar to CompTIAs A+ certificate. Telkom really can position itself as the trainer for ICT in Southern Africa as well.
I'd reduce 8ta flagship stores to a minimum and have no more than six DO Broadband flagship stores (Gauteng, Cape Peninsula, Eastern Cape (probably Port Alfred of all terrible places, although Grahamstown would be a lot cooler), kZN, Bloemfontein all come to mind); Telkom Enterprise Solutions would be flagshipped at any TESPlex; Business may have a business center which would be shared with Wholesale; and of course Mobile would use its airport lounges.
More importantly though Telkom desperately needs to get on with business and to sort out a culture of stupidity.
