In South Africa, Telkom has released its Integrated Report for 2022, which reveals it has put “victory in broadband” at the core of its business strategy.
The report comes as Telkom is in discussions with MTN over a takeover bid of the operator. However, the discussions are said to be at an early stage, with Telkom and MTN saying there is no certainty the transaction will be effectuated.
In the report, Telkom Group CEO Serame Taukobong said, “Victory in broadband is the backbone of our strategy, supporting Telkom’s aspiration to become the leading broadband service provider in South Africa.”
“Over the past few years, we have invested in mobile and fibre infrastructure assets to prepare for 5G, and our combined asset base sets us apart from the rest of our competitors,” he explained.
According to Taukobong, as of the end of FY2022, Telkom has over 11 million broadband subscribers, with mobile accounting for 10.5 million and fixed broadband at 500 000 − and 79 per cent of the company’s fixed-line broadband customers are using 10Mbps and higher, supporting higher data consumption.
Taukobong reported that Openserve is one of the market leaders in the South African fixed market, with more than 840 000 homes passed and a fibre-to-the-home (FTTH) connectivity rate of more than 46 per cent.
“2022 has been a milestone year in terms of victory in broadband with the additional mobile spectrum we secured,” Taukobong added. “We obtained 20MHz of 800MHz and 22MHz of 3 500MHz for US$125 million. As a result, Telkom’s total spectrum portfolio now stands at 170MHz across all bands.”
He further explained that the newly-acquired spectrum would enable the operator to offer a credible 5G proposition, mentioning that “The sub-1GHz enables us to deploy networks more efficiently and increase coverage.”
Earlier this year, Telkom made a payment of US$65 million for the sub-1GHz spectrum, currently occupied by broadcasters.