Telkom eyes fi­bre and mo­bile for its fu­ture growth

CityPress - - Busi­ness -

Telkom is look­ing to grow its fi­bre and mo­bile in­ter­ests with the telecom­mu­ni­ca­tions group spend­ing bil­lions of rands on grow­ing th­ese two sec­tions of its busi­ness.

Sipho Maseko, Telkom CEO, said dur­ing an in­ter­view this week that the group had an es­ti­mated fi­bre mar­ket share – cover­ing fi­bre to house­holds, busi­nesses and base sta­tions – of about 50%.

How­ever, he said that the fi­bre mar­ket was see­ing in­creased com­pe­ti­tion as the num­ber of fi­bre com­pa­nies ex­panded.

Telkom has in­stalled more than 149 000km of fi­bre, which goes through 2.2 mil­lion premises.

Maseko said dif­fi­cult times for the group’s mo­bile unit were over as the busi­ness was grow­ing and prof­itable after four years of losses.

Telkom put the prof­itabil­ity of the unit down to its net­work ex­pan­sion, dis­tri­bu­tion net­work ex­ten­sion, an in­creased num­ber of stores and in­no­va­tive prod­ucts, es­pe­cially data of­fer­ings.

Telkom’s mo­bile busi­ness now has al­most 4 mil­lion cus­tomers and the mo­bile busi­ness, es­pe­cially broad­band, is grow­ing rapidly.

Turn­ing to ac­qui­si­tions, Maseko said that Telkom would only con­sider “sen­si­ble” ac­qui­si­tions.

Telkom’s fo­cus for now was fix­ing the group’s ex­ist­ing busi­nesses, he added.

– Justin Brown

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