South Africa: “We are killing Telkom”

26 July 2019

Telecoms

Telkom is rapidly losing ADSL and fixed-line subscribers across South Africa, despite its plan to be the premier fixed-broadband provider in the country.

Telkom currently has 2,267,000 fixed-line subscribers, which is the lowest this figure has been since the dawn of South Africa’s democracy.

An even bigger surprise is that Telkom’s ADSL, VDSL, and fibre subscribers declined from 981,176 to 847,650 over the past year.

This 13.6% decline in fixed-broadband subscribers comes at a time when there is a strong demand for fibre-to-the-home services in South Africa.

One of the main reasons behind this decline is independent fibre network operators (FNOs) which are rapidly rolling out fibre networks and are moving Telkom’s clients onto their networks.

Telkom leaves the door open

For decades Telkom was the only fixed-line provider in South Africa, and over this period the company built an extensive copper and fibre network across the country.

Telkom has conduits and copper lines in millions of homes, and many of these households subscribed to the company’s voice and Internet services.

With an established network, conduits in the ground, and the contact details of millions of households, it looked impossible to compete against Telkom.

Telkom, however, did not make the most of its advantage. Through inaction and ineptitude, Telkom made it possible for newcomers to beat it at its own game.

Read the full article on MyBroadband here.