Telkom’s new CEO-designate, Serame Taukobong, said that instead of engaging in a price war, they prefer to add more value to remain competitive.
Telkom recently announced that Taukobong would take over from Telkom CEO Sipho Maseko when he leaves the company in June 2022.
Taukobong currently serves as Telkom’s chief executive for its consumer business group, which gives him good insight into the pricing strategy around their products.
In the past, Telkom has relied on affordability as a competitive edge to gain market share from Vodacom and MTN.
In recent years, however, Vodacom and MTN slashed the price of their data packages. In many cases, Vodacom and MTN’s prices are lower than Telkom’s.
It raises the question of whether Telkom is losing its edge or whether it has another strategy to remain competitive.
Taukobong dismissed the notion that Telkom is struggling to hold on to its competitive edge, explaining that “when they go low, we go high”.
He said Telkom does not anticipate a price war. Instead of dropping prices, the company is offering more value to its customers.
The ability to offer more value, Taukobong said, is built on the intrinsic nature of their network, which gives them more capacity to offer data.
“This helps us to be competitive by offering more value as opposed to dropping prices and eroding the market,” he said.
Telkom has been growing its mobile network to help it to limit roaming expenses and provide a unique offering in the market.
Taukobong said roaming on Vodacom’s network has helped it increase its footprint, but that did not stop Telkom from investing in its own network.
He said they have significantly increased the footprint and capacity of Telkom’s own mobile network to ensure they “deliver excellent value to our customers”.