Getting Telkom ready for competition

Speaking on the Moneyweb Power Hour on Radio 2000, Molotsane said that the beginning of his tenure will be spent listening to what people within the business are saying, especially as he does not have experience in the telecommunications field.

“It’s important for any new CEO to get into an organisation and keep their mouth shut for a while, and listen to what people are saying. I would need some time to go into Telkom, do some kind of a diagnostic, and evaluate what the critical issues are, and perhaps formulate a strategic agenda moving forward.”

Molotsane’s says his strength is his ability to learn fast, and that he was employed to lead Telkom in the “very competitive market that is starting to emerge”.

The challenges he will face at Telkom – dissatisfaction regarding high telecommunication prices, the inevitability of Telkom’s market share being eroded by the SNO and sustaining the excellent numbers Telkom has reported – are very different to those he has faced in his current position as head of Transwerk, the Transnet subsidiary dealing with the provision of trains.

“The challenge will be different but we will have to ensure that, whatever we do we still maintain or improve shareholder value. Telkom has been very successful. The numbers have been fantastic. But competition will be a challange,” says Molotsane.

While Molotsane says Telkom’s technical expertise is in place, his experience in the hospitality industry at food outsourcing company Fedics and as the president of will bring a more service-focused edge to the business.

“I think what is important for me is to really focus on what I can deliver to the customers, because if the customer is contented and happy, I will definitely get the kind of returns that I need,” he says.

“For this economy to thrive and move forward, we’ve got to have very competitive and profitable businesses. But at the same time, this business must be responsible, be a good corporate citizen, and be able to contribute to society in such a way that we can improve the quality of life of people. But in order for us to do that, you’ve got to run a profitable business.”

Molotsane speaks highly of his previous boss, Transnet CEO Maria Ramos: “I’ve learnt a lot from Maria, there’s no doubt about it. What I will take away from Transnet is the ability to rally forces behind a single agenda, the ability to expect meticulous work from all my people, and to build a strong team that will take Telkom forward. To work with a lady like her – gee, it’s a fantastic experience.”

Allan Gray’s Stephen Mildenhall says colleagues at the institution who had met Molotsane were impressed. Mildenhall says Molotsane’s new position will be “a huge challenge”, as revenues come under pressure with competition: “it will be a huge challenge not to cut more staff, just to keep profits afloat,” he says.

Irnest Kaplan, the managing director of Kaplan Equity Analysts, says that Molotsane’s appointment is an interesting development: “Many players depend on Telkom, and if he is lenient in his approach, companies like DataPro and Internet Solutions [both are Internet service providers] may benefit.”