Telkom’s approach in the mobile market is to offer uncapped and unlimited data products, which provides subscribers with bill certainty and removes out-of-bundle bill shock.
This is according to Telkom CEO Sipho Maseko, who was speaking to CNBC Africa about the company’s plan in the mobile market.
Maseko said it is tough to compete in the local mobile market, especially for Telkom which is the smallest mobile operator.
To take on Vodacom and MTN, Telkom therefore decided to focus on data-centric value propositions.
The mobile data strategy extends to its network investments, with the company focusing on the data capacity of its network.
Maseko said Telkom does not have the same challenges as its competitors when it comes to 2G voice, however, which means it can focus on its 3G and 4G networks.
“We will most certainly be the most 5G-ready of the mobile operators by 2020, because we do not have legacy 2G voice,” said Maseko.
In an interview with The Money Show’s Bruce Whitfield, Maseko said Telkom also has the benefit of owning a lot of spectrum.
“We have 1,800MHz, 1,900MHz, 2,100MHz, 2,300Mhz, and 3,500Mhz spectrum, which we are able to leverage.”
Maseko said Telkom’s approach in the mobile market, especially with its data-centric products, is to offer uncapped and unlimited services.
“We figured out that all customers want to buy is speed – don’t cap them on their broadband side,” said Maseko.
“That is why when you look in the market, we have been driving uncapped and unlimited propositions.”
He added that Telkom has commoditised voice, and that the company is offering voice for free on many of its data products.
“Because our network is a modern IP network, we are able to deal with the volume of traffic,” said Maseko.