CONVERGENCE IN A
CUSTOMER-CENTRIC ERA

Telkom is in the midst of a renaissance, driven by convergence, according to Godfrey Ntoele.

South Africa's incumbent network operator, Telkom, is in the midst of a transformation being driven by a global expansion strategy and the demands of converging connectivity technologies.

Godfrey Ntoele, group executive of the NSMO division at Telkom SA describes Telkom's transformation as "a renaissance".

"A rebirth of sorts is going on and a strategy leads the structure," he said, speaking at SITA's GovTech 2009 conference yesterday.

"Telkom is refocusing to maintain its leadership position in South Africa, while growing a strong footprint on the continent," he added.

Ntoele said that, as an African player, Telkom will maintain South Africa as a base, but has a strategy to leverage international cable projects and its investments in Africa to grow into the whole continent.

"We are part of a continuous process. When we do this in building blocks, it may be misunderstood," he warned.

"On the one hand, you must look at the way you behave in the context of the broader industry, but the change is almost always driven by a changing society and environment."

Ntoele said that the Telkom Group is transforming to ensure clearer accountability and better organisational alignment with an underlying strategy.

"The group will be equipped for our international expansion and focus on convergence in the forms of fixed-mobile convergence (FMC) and ICT," he said.

He added that Telkom will be ready for increased competition by being more customer-centric and cost-efficient. It will also be compliant with regulatory requirements, for example, splitting wholesale from retail.

According to Ntoele, Telkom's network of the future will focus on logical network layers focused on service diversification.

He said, "Today we realise that a telephone line without Internet access is of no use. Customer demand will always precede legislation."

Ntoele added that Telkom takes cognisance of what customers in South Africa wish to use their Internet connectivity for, and will mould its strategy based on what South Africans need.

He noted that prices will come down and suggested that South Africans should expect much consolidation in African telecommunications, as smaller operators are acquired by bigger companies.

Ntoele also made mention of 2010 and Telkom's involvement in providing connectivity to the event, which requires 40Gbps of bandwidth for both downloads and uploads into each stadium. He said that a dry-run of Telkom's capabilities in this regard took place at four stadiums during the 2009 Confederations Cup.

The convergence that acts as a driving force behind the progress of telecommunications is vital to Telkom's transformation. Ntoele said that Telkom is moving towards being a one-stop solution provider, as especially IT and telecommunications converge.

"Telkom will improve efficiencies through shared resources," he said.

He added that Telkom will partner with venture capital partners and create innovative products and services, while looking at outsourcing growth opportunities in its data centre services division.

Ntoele singled out Telkom's move to provide mobile broadband in particular, with its Do 3G product.

"Telkom's Do 3G services provide high speed Internet access," he said.

"It uses the latest HSDPA and HSUPA wireless network support devices capable of 7.2Mbps high-speed downlink packet access and 2.4Mbps high-speed uplink packet access," he continued.

"This is provided with competitively priced Wireless Internet bundles ranging from 500MB to 10GB. Our bundle rates are significantly lower than those of competitors and provide for a single rate across all plans."

As Telkom moves into the future, Ntoele promised that the company will ensure that it keeps customer demand front-of-mind and that it meets its strategy objectives to keep South Africa connected.