Telkom may close many exchanges

Telkom is planning to replace copper services with wireless 3G and LTE products in areas where the company’s exchanges are losing money.

Miriam Altman, head of strategy at Telkom, told MyBroadband that of its 1,900 exchanges, only about 600 are really profitable.

It is understood that these 600 exchanges is where users can expect Telkom to roll out its MSAN network to offer 20Mbps and 40Mbps VDSL services.

The majority of Telkom’s exchanges – around 1,000 which are not particularly profitable but are also not losing money – will be maintained in their current state.

The loss making exchanges, close to 300, are facing the axe. Copper based products at these exchanges are set to be replaced by 3G or LTE services.

Telkom said that as part of its network modernisation and transformation programme, it is continually reviewing the technology deployed in the network.

“As and when required it will upgrade or replace technology which cannot be maintained cost effectively,” Telkom said.

“As an example, we are deploying MSAN technology to provide FTTH and VDSL services in the major metropolitan areas.”

“On the other hand a limited number of exchanges have already been “closed” as part of replacing manual exchange technology with technology that can support modern telecommunication needs for those areas,” Telkom said.

“We will continue evaluating opportunities for network modernisation and optimisation.”

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Telkom may close many exchanges