Telkom’s new CEO met with mixed reception
September stepped in when CEO Papi Molotsane was forced to resign in April after clashing with the government over Telkom’s involvement in undersea cable projects. Analysts had hoped for an external recruit with international experience. However, the government owns 38% of Telkom and that makes the appointment a political choice as much as a commercial decision.
A foreigner may have been less willing to toe a line so heavily influenced by politics, and the politicians no doubt required a local empowerment appointee. A foreigner may also have balked at accepting the job when Telkom’s future is so uncertain, as it negotiates to sell its fixed-line assets to MTN and its 50% stake in Vodacom.
“I don’t know if it’s the right move,” said one analyst. “He’s okay from an operational point of view but I don’t know if he has the gravitas. I’d have preferred someone who is more of a deal maker. It would have been nice to have brought in some new perspectives and broader experience,” he said. “But if market speculation is correct and Telkom’s fixed-line business gets sold to MTN, this may be like shuffling deck chairs on the Titanic.”
September, 50, is a 30-year veteran with Telkom who became its chief operating officer in 2005.
“What September has said has always been very good but what he’s delivered has been iffy at best,” another analyst said. “There’s a big disconnect between words and action. That’s not necessarily his fault, but as the leader he should have insisted on clarity as to Telkom’s activities and intentions in the market.”
The Telecommunications Action Group said it was disappointed that an opportunity had been missed to introduce new vision. September was very much part of the existing regime that had consistently used its monopoly to capitalise on the lack of consumer choice.
“The appointment of September suggests Telkom is not truly committed to any form of change,” the group said.
Trade union Solidarity expressed “satisfaction” and said because September had worked his way through the ranks, he would have a greater understanding of the needs of employees and the need to create a healthy working environment.
The board said it had followed a rigorous evaluation process.
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