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06 August 2012

Demand for Telkom's 10 Mbps Broadband nears critical milestone

Telkom's journey towards consolidating its position as the premier provider of fixed Broadband is about to reach the critical milestone of connecting its 200 000th customer to its 4-10 Mbps ADSL service.

"This is the result of clear and focused set of efforts to deliver on our Broadband strategy," says Managing Director of Telkom Wholesale and Networks, Mr Bashier Sallie. "In simple terms we have set out to upgrade the speed of entry level and mid-range broadband access, whilst building out the footprint for our high speed broadband."

In a country where the potential fixed broadband customer base is relatively dispersed, uptake and utilisation levels are crucial to building out a substantial footprint and driving down the cost to serve.

Sallie points to Telkom's recent announcement to upgrade 384 kbps to 1Mbps and 1Mbps to 2Mpbs. "The news of the upgrades were well received and is keenly anticipated by our customers," he says.

"We are hard at work and on track to complete the upgrades in the next 60 to 90 days. These upgrades together the brisk demand for our 4-10Mbps bodes well for the commencement of our High-speed broadband pilots."

The usage of fixed line broadband data has grown exponentially since the introduction of uncapped data usage.

"Our customers love fixed line broadband. I've observed the evolution of broadband usage in my own home over the past few years. If the service is down, which is not often, then there is mini crisis in my home! We have a couple of PC's, three tablets and four smartphones all set up to use fixed broadband to access the internet in the home zone, either via cable connection to the modem or WiFi with the aim of optimising mobile data usage. Also leveraging the quality of service and speed of a fixed line broadband service especially for large downloads or a latency sensitive application is key.

"So it's not just a case of 200 000 10Mbps connections - it's important to understand the one-to-many or multiplier application of fixed broadband. I would say on average four people have the use of a fixed broadband connection in the home, in small and medium business this is probably significantly higher. The proliferation of tablets and smartphones has been a boon for fixed broadband stickiness," adds Sallie.

In March 2012, Telkom announced the start of a journey towards a future-proof network, based on a comprehensive set of network interventions. At the time Sallie said, "We have commenced the last, and arguably the most challenging, of these interventions - a revamp of our access network. The destination is an all-IP network designed to enable fixed-mobile convergence and truly differentiated high speed broadband."

Sallie explained that the revamp of Telkom's access network aims to enable a truly differentiated broadband capability. He reiterated that Telkom will take fibre deeper into the network, thanks to new fibre capabilities, and will smartly leverage a mix of access technologies, namely very high speed DSL technology (VDSL2) in a fibre-to-the-curb configuration and passive optic fibre (PON) configuration directly to the home or business premises.

Telkom aims to increase our Multi Services Access Node (MSAN) rollout to 3700 points of presence in the country. This new generation fibre access node will enable VDSL2 and xPON speeds.

"We are on schedule in building out our pilot footprint and will make the detail available in the next couple of weeks," concludes Sallie.

For further enquiries, please contact:

Pynee Chetty

Senior Specialist: Media Relations

Group Communication

Tel:+27 12 642 1716

Mobile: +27 81 389 7874

Email: chettpr2@telkom.co.za

OR

Leigh-Ann Francis

Specialist: Media Relations

Group Communication

Tel: +27 12 642 1728

Mobile: +27 81 391 4780

Email: francilm@telkom.co.za

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ABOUT TELKOM:

Telkom is a leading communications services provider in South Africa. We had consolidated operating revenue of R16.8 billion and normalised profit after tax of R1, 683 million for the period ended 30 September 2015. Total assets amounted to R41.9 billion and equity attributable to the owners of Telkom to R23.5 billion as of 30 September 2015. The group generated normalised free cash flow of R1.4 billion for the period ended 30 September 2015.

As of 30 September 2015, we had approximately 3.3 million telephone access lines in service and 1,030,441 ports connected via MSAN access. We offer business, residential and payphone customers a wide range of services and products, including:

  • fixed-line retail voice services using PSTN (Public Switched Telephone Network) lines, including ISDN (Integrated Services Digital Network) lines, and the sale of subscription based value-added voice services and calling plans;
  • fixed-line customer premises equipment rental and sales services both voice and data needs and these include PABX, Computers, Routers, Modems, Telephone handsets and other ancillary equipment;
  • interconnection services, including terminating and transiting traffic from South African mobile operators, as well as from international operators and transiting traffic from mobile to international destinations;
  • fixed-line data services, including domestic and international data transmission services, such as point-to-point leased lines, ADSL (Asymmetrical Digital Subscriber Line) services, packet-based services, managed data networking services and internet access and related information technology services;
  • Data Centre Operations includes e-commerce, application service provider, hosting, data storage, e-mail and security services;
  • W-CDMA (Wideband Code Division Multiple Access), a 3G next generation network, including fixed voice services, data services and nomadic voice services;
  • mobile communication services, including voice services, data services and handset sales through our mobile navbar-brand called Telkom Mobile;
  •  information and communication services including cloud services, infrastructure services, workspace services, global service integration management and hardware and network equipment sales locally, in seven African countries, the UK and Dubai through Business Connexion Group; and
  • other services including directory services, through Trudon (Pty) Ltd, wireless data services, through Swiftnet (Pty) Ltd.

Convergence is one of our key strategic initiatives in building a sustainable future for Telkom.  We will lead the provision of converged services in South Africa in support of our mission statement: Seamlessly connecting people to a better life.