Brutal consolidation ahead

TELKOM is preparing for a brutal consolidation in the telecoms sector by overhauling its product offering to become a one-stop shop for private and business customers.

It is also looking at further partnerships and acquisitions‚ as it seeks to bolster areas of weakness.

Chief operating officer Brian Armstrong acknowledged that Telkom had failed customers, but said the operator was now poised to make fundamental changes.

South Africa's mobile operators are not having an easy ride as competition grows‚ and they are revamping their services in an effort to open new revenue streams.

Key among these is data‚ for which demand has surged.

Telkom is lagging behind Vodacom and MTN in mobile services‚ and deals such as its infrastructure-sharing arrangement with MTN are intended to play to its strengths, its extensive network, and improve its ability to offer mobile internet services.

Armstrong said Telkom believed by offering clients a full range of services‚ encompassing voice and data‚ it would be able to defend itself from growing competition.

He recently hosted the Durban edition of the CIO Roundtable on digitalisation. The series invites the chief information officers from South Africa's top companies to discuss how the mega-trend of digitalisation affected business.

Armstrong said it was time for businesses to make the digital leap. "Every business is now a digital one." - Samuel Mungadze