Company Profile

On starting out 18 years ago, Telkom was essentially a South African telephone company. Then, as the country underwent profound transformation, so did Telkom.

After digitising and modernising the network, we opened our National Network Operations Centre to monitor and manage it 24 hours a day, 365 days a year. Then we branched out into internet services, managed data networking, data hosting, IT security and virtual private network services.

Gone were the days of plain old telephony

We worked hard to improve operating efficiencies and cost-effectiveness and, most importantly, the quality of the customer experience. At the same time, Telkom became - and remains - one of South Africa's most demographically representative companies and biggest investors in ICT skills development.

In March 2003, we listed on the New York Stock Exchange and the JSE Limited.

The ICT landscape changed. Out went the old Telecommunications Act of 1996 and in came the Electronic Communications Act of 2006, paving the way for converged services, service-based competition and a new licensing regime.

Embracing the move towards convergence, we began the evolution to the new broadband rich, IP-enabled Next Generation Network.

In February 2007, we made our first acquisition outside South Africa, namely Africa Online, the largest Pan-African Internet Service Provider in Sub-Saharan Africa.

In May 2007, we extended our footprint to West Africa by acquiring 75% in Multi-Links, Nigeria's second largest private telecommunications operator. In January 2009 we acquired the remaining 25% stake in Multi-Links, thereby increasing our shareholding to 100%.

As competition intensified in South Africa we realigned our business strategy. We will seek to differentiate ourselves from competitors by moving from a provider of basic voice and data connectivity to become Africa's preferred information, communications and technology service provider, offering fully converged voice, data, video and Internet services.

Our core strategy is to defend and grow profitable revenue, while managing costs. We will seek to defend profitable revenue by providing superior, customized solutions that meet the needs of consumer, business and wholesale customers. We will pursue growth of profitable revenue through fixed-wireless and mobile data services, broadband services and converged services both in South Africa and internationally. We will seek to grow both organically as well as through partnerships and acquisitions, while managing costs.

In March 2009, our strategic focus on growth in the area of mobile capability received a major boost when Telkom shareholders approved the sale of 15% of Telkom's stake in Vodacom to the UK's Vodafone Group and the unbundling of our remaining 35% to shareholders. This transaction enables us to execute our strategies in the areas of mobile services, integrated solutions and the provision of converged fixed-line, mobile and data solutions. The deal also frees the Company from the geographic limitations previously imposed by the shareholder's agreement with Vodafone.

To further support our ability to maintain our leadership position in South Africa while building a strong footprint on the continent, we have embarked upon a process renewal - in essence, a complete transformation of the way we focus on servicing our customers and creating value for our stakeholders.

As part of this transformation drive, three major Business Units of the new organisational structure came into being on 1 April 2009. These are Telkom SA, Telkom International and Telkom Data Centre Operations.