Telkom
Assessment date: Oct 2017
Telkom’s review from the chairman, is in part frank and realistic, in part fatalistic about the tide of events and the prospects for the company. Despite restructuring and evidence of significantly improved performance, current thinking sounds hopeful rather than confident. Reporting from the CEO clearer, acknowledging it has inefficient systems to respond to customer demand for its services, and poor control over the behaviour of its people, especially contractors. Further operating improvements expected from service efficiencies.
Telkom’s last-mile advantage as the incumbent provider is becoming vulnerable to disintermediation from new technologies, especially in the mobile space. In mitigation, Telkom reports that its “mobile broadband-led strategy” was the star performer of the year. Telkom is investing in skills development in order to bring up its BBBEE score in line with the new ICT sector charter, but are further challenged by intended reduction in government’s ownership stake. Regulatory uncertainty, particularly regarding access to broadband, may account for the hesitancy evident throughout the report.
See the executive summary for a more complete overview of FarSight’s analysis for Telkom. Buy our full report for detailed analysis and supporting discussion.
