Telkom getting ready to take on Vodacom, MTN?
After its sale of Vodacom, Telkom is now in a position where it can roll out its own mobile services and compete head on with the three established cellular operators. Telkom CEO Reuben September said that “to implement this strategy we have obtained access to the 1800MHz and 2100MHz spectrum bands to utilise 2G and 3G technologies in pursuit of our voice and mobile data services.”
“We have started rolling out a W-CDMA Wireless Local Loop (WLL) network in the 2100MHz band. Initially planned to deliver service in areas plagued by theft, breakages and incidents, the network is now expected to evolve into a full mobile network to compete with other mobile operators. As of March 31, 2009, we had 141 base station sites in major metropolitan areas,” Telkom states in its annual report.
At the end of 2008 Telkom launched its 3G/HSDPA data offering, undercutting Vodacom and MTN on bundled data pricing and providing an out-of-bundle rate of 30c per MB – far lower than the usual R 1.20 per MB.
Earlier this year the company launched its Telkom Mobile cellular offering utilizing their W-CDMA network. Subscribers can use their Telkom SIM card with any 3G-enabled mobile phone to make voice calls, send SMSs or use data services.
Telkom has previously indicated that their plans to offer a fully fledged mobile service in competition to Vodacom, MTN and Cell C will depend on the outcome of a market research study and a roaming agreement they are currently negotiating with the South African mobile operators. “At this stage, we will not commit to any capital expenditure before completion of the comprehensive market study,” said September.
Rumours are however starting to surface that Telkom is set to continue with its mobile plans. According to unconfirmed information the company is set to launch prepaid Telkom Mobile vouchers by the end of 2009 and allow for number porting in early 2010.
There is further speculation that the company is planning to roll out 1 500 3G/HSDPA base stations in all urban areas and an additional 1 000 2G base stations in rural areas. Telkom is further planning cellular coverage of all 2010 stadiums. Telkom has appointed Huawei to build its mobile network.
Telkom would not comment on their mobile plans or about speculation that they are preparing to launch prepaid cellular vouchers. It is however no secret that Telkom has a very strong focus on mobile services and is looking towards mobile as a strong future revenue stream. Telkom also have a strong focus on fixed-mobile convergence, and is planning to launch bundled fixed-mobile offerings.
At the end of March 2009 Telkom had a total of 5 253 W-CDMA (3G/HSDPA) subscribers.
Telkom as fourth cellular operator – comments and views
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