for the six months ended September 30, 2010
Telkom launches its mobile brand under a new name called -: 8ta
On 18 October 2010 Telkom launched its new mobile brand called "8ta".
The launch of Telkom's mobile brand under the new name 8ta is undoubtedly the most significant achievement to date, one that will allow Telkom to not only counter the threat posed by competition such as fixed-to-mobile substitution (and the resulting decline in fixed-line voice revenue) but also grow Telkom revenue by providing mobile services and products to consumer and business markets.
Launching a retail brand is a massive undertaking that consists of a myriad of components - among other things the network and technology aspects, billing, products and services, distribution channels and the marketing drive to create awareness and generate sales.
Key brand attributes:
8ta is built on a number of core pillars. These give the brand a unique personality that tells the customer what 8ta stands for and why it is different to other brands in the mobile market:
Government extends the chairman's contract
On 12 November 2010, the Government announced the renewal of the chairman's contract, Mr Jeff Molobela, for two months to give the Cabinet time to decide on his future. In addition to the above, Dr Victor Lawrence and Jackie Huntley's respective contracts which came to an end on 15 November 2010, were extended for an additional two months.
Public Finance Management Act (PFMA)
Telkom's 3 year exemption from certain sections of the PFMA ended on 25 October 2010. The Minister of Communications has recommended a further 3 year exemption to the Minister of Finance for approval.
Multi-Links Telecommunications Limited
The Telkom Group Board has mandated management to review options of exiting the CDMA business. Telkom has received a number of expressions of interests which will be evaluated and quantified over the next quarter.
Other matters
The directors are not aware of any other matter or circumstance since the financial period ended 30 September 2010 and the date of this report, or otherwise dealt with in the financial statements, which significantly affects the financial position of the Group and the results of its operations.