Telkom’s mobile data, broadband plans
Telkom has recently announced that they have made a decision to build a fixed wireless and mobile data network. The company further indicated that the assigning of GSM spectrum to Telkom provided the necessary impetus to this initiative.
The company’s CEO, Reuben September, said that Telkom will follow the example of leading international fixed line operators which continue to grow by remaining focused on their existing strengths and continuously transforming their fixed line business model to increase its value proposition to customers.
September said that some of Telkom’s ‘untapped initiatives’ include data centers, digital home offerings and partnering with leading IT companies to provide products up and down the value chain like remote home IT support.
September further indicated that it will focus on the increased usage per ADSL link to homes and businesses, including multiple and simultaneous usage of the same link.
Mobile strategy
September said that the rationale behind Telkom’s move into the wireless and mobile environment includes improving the company’s competitive position and international bid-credentials.
Telkom said that it aims to have an “up and running” mobile network to take advantage of the EC Act and secure last mile access to “pump” traffic back through its fixed network.
September said that the company may work together with mobile operators in their mobile network rollout, and the decision as to where and to what extent Telkom will build will be determined by the availability of mobile operators’ networks and their willingness to cooperate.
The Telkom CEO said that it intends to focus on providing mobile data services, including offering interim 3G connections to clients waiting for their ADSL service to be installed.
One of the reasons why many prospective ADSL clients opt for services like iBurst or HSDPA is the long ADSL installation period, something which Telkom’s 3G strategy clearly aims to address.
The company is further planning to expand their current Do Broadband offerings to include “Do Mobile Broadband”.
September said that the depth and pace of penetration levels will be based on various issues, including existing co-location synergies, network sharing and roaming arrangements with mobile operators and revenue share arrangements with suppliers.
Here Vodacom did not want to confirm or deny potential collaboration with Telkom, but said that they are ‘continually discussing areas of potential synergies’. MTN did not provide feedback by the time of publication.
Going wireless
The Telkom CEO said that the decision to go the ‘wireless route’ was made because it provides a more viable alternative to marginal fixed line operations, with mobile technologies being more efficient in rural areas.
Wireless network rollouts provide Telkom with quicker rollout capabilities and limit the impact of high incidents of cable theft and high maintenance areas.
September also said that mobile technologies offer roaming prospects and that GSM spectrum enables the deployment of cheaper and more appropriate customer premise equipment and more desirable handsets and services.
Telkom is confident that this strategy will enhance customer satisfaction and convenience and bring a new range of services – including mobile banking – to their customers. September said that their wireless investment will give customers an increased opportunity to spend their money with Telkom.
Telkom's mobile strategy discussion
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