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28 October 2013

The SIM-SONKE mobile price revolution spreads across South Africa

Telkom's mobile division announced that SIM-SONKE subscribers will now be able to make calls from anywhere in the country. Previously customers were able to make calls only where Telkom Mobile has network coverage.

"We introduced SIM-SONKE as a community based product that dramatically lowered the rate for people who make frequent calls primarily to others who live in close proximity. By offering the product on the Telkom Mobile network only, we could reduce costs and pass the savings on to customers," says Kagiso Moncho, Telkom Mobile Executive for Commercial Product Development.

Telkom Mobile's all IP 3G network is currently concentrated in urban areas that cover over 60 percent of the country's population. A roaming agreement with one of the country's other mobile operators enables the Telkom Mobile to provide products and services nationwide as the entity continues the rollout of its own network.

"People everywhere want to benefit from the lowest standard call rates in the country when calling friends and relatives nationwide," continues Moncho. We had to make it possible for these friends and relatives to also subscribe to SIM-SONKE. By making SIM-SONKE available on our network and our roaming partner's we can now offer the product nationally."

This change also means that during the festive season when many people are traveling around the country, subscribers can use SIM-SONKE wherever they go.

The change was motivated in part by the regulator's decision to reduce interconnect fees. "The move by the regulator helped make it possible to offer SIM-SONKE nationwide. By lowering the price barrier to entry and now making it available nationwide, we hope to see more people benefitting from the connectivity that mobile technology provides."

The product continues to be about community. At launch the marketing was exclusively through community based media. Over time other media platforms have been included, but community radio and wall murals in particular continue to be key advertising platforms.

"In future the wall murals will do double duty," says Moncho. "We are in the process of rolling out an airtime distribution network through which the owners of properties where we have wall murals also sell SIM-SONKE starter packs and airtime. Not only will this initiative provide additional income for community members, it means our customers will have more places in their communities to buy the product and top up with airtime."

Telkom Mobile airtime is available via a number of different channels including online, ATMs and in stores. The airtime is also interchangeable with 8ta navbar-branded airtime.

"SIM-SONKE has revolutionized the prepaid market and continues to do so. We have made standard product benefits that are typically offered as promotions, such as free SMSs and free calls to other SIM-SONKE subscribers from 21h00 to 06h00 when topping up. We look forward to adding more game changers over the coming weeks," concludes Moncho

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

Telkom Park, The Apex

92 Oak Avenue

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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.