Overview

Telkom is a South African telecommunications group headquartered in Centurion. It provides fixed-line and mobile communications, broadband access, wholesale network capacity, information-technology services, cloud and data-centre capabilities, enterprise connectivity, and related digital services. The group serves consumers, businesses, public-sector organisations, internet service providers and wholesale telecommunications customers. The modern Telkom organisation was created in 1991 when the South African Department of Post and Telecommunications was divided into separate postal and telecommunications businesses. Its roots therefore extend into the much older development of telecommunications in South Africa, including the first telegraph connection between Cape Town and Simonstown in 1860 and later international submarine links. After its creation, Telkom became the principal fixed-line operator in South Africa and for many years held a powerful position in local and international telecommunications infrastructure. Telkom's business developed through a combination of regulated infrastructure ownership, consumer connectivity, enterprise services and international expansion. Between 1997 and 2004, the company was managed by SBC Communications, now part of AT&T. In the 1990s, Telkom also helped establish South Africa's mobile market through a partnership with Vodafone. That mobile venture became Vodacom, in which Telkom later sold its interest in 2008. Telkom subsequently built its own mobile operation under the 8ta brand, publicly launching the service in 2010; the business was later renamed Telkom Mobile. The group has operated through several specialist businesses. Openserve focuses on wholesale fixed infrastructure, including fibre-to-the-home deployments and network services supplied to internet service providers. Telkom Mobile provides consumer and business mobile services. BCX is the group's major information-technology and enterprise-services business, while Cybernest provides data-centre and related infrastructure services. Telkom's wholesale and network operations complement its retail, business and digital offerings. Telkom expanded beyond traditional voice services into broadband, managed data, cloud, hosting, information technology, applications and converged communications. Its earlier fixed broadband portfolio included ADSL and later VDSL and fibre products. Its mobile network developed from 3G into later-generation mobile connectivity. The company also introduced digital partnerships, including a music-streaming service launched with Tencent Africa and JOOX in 2021. The company has faced criticism over its historic fixed-line dominance, the cost of telecommunications in South Africa, traffic caps and network traffic shaping. It has also been involved in regulatory and contractual disputes and faced allegations concerning procurement, nepotism and management practices. These issues occurred as the South African market became more competitive through mobile operators, alternative fixed networks, fibre providers and evolving regulation. Telkom acquired Business Connexion in 2015 for approximately ZAR 2.6 billion, strengthening its position in South Africa's information-technology and enterprise-services market. In 2018, FastNet's enterprise wireless activities were incorporated into BCX. Telkom also pursued pan-African operations through businesses including Africa Online and Multi-Links, although its principal operating identity remains South African. After reporting a substantial loss in the 2023 financial year, Telkom described a significant turnaround in 2024, reporting a profit of approximately ZAR 1.88 billion and assets exceeding ZAR 61 billion. The group remains an active, partly state-influenced telecommunications company, with a strategy centred on network infrastructure, mobile and fixed connectivity, enterprise technology services and digital growth.

History

South Africa's telecommunications history predates Telkom by more than a century. A telegraph line linking Cape Town and Simonstown was operating in 1860, and international submarine connections followed in the late nineteenth century. By the 1960s, South Africa had telecommunications links with dozens of countries and a growing international calling market. Telkom emerged in 1991 after the South African Department of Post and Telecommunications was divided by legislation into separate postal and telecommunications functions. The new telecommunications organisation inherited the country's principal fixed-line infrastructure and became the dominant provider of fixed voice services, leased lines and international connectivity. Its position was strengthened by the limited number of alternative networks available during the early liberalisation period. In 1994, Telkom underwrote South Africa's entry into mobile communications through a partnership with Vodafone. The resulting business developed into Vodacom, one of the country's major mobile operators. Telkom later sold its interest in Vodacom in 2008 and redirected its mobile strategy toward a network of its own. That strategy first appeared under the 8ta name, with public service launched in October 2010, and was subsequently presented as Telkom Mobile. From 1997 to 2004, the company was managed by SBC Communications. During this period, operational restructuring and changes to pricing and staffing were associated with efforts to improve commercial performance. The South African market then evolved through new licensing arrangements, regulatory reform and the emergence of competing mobile, fixed and wireless operators. The Electronics Communications Act helped consolidate the licensing framework for fixed and mobile telecommunications. Telkom became an important broadband provider during the 2000s. Its ADSL service was sold to retail customers and businesses through Telkom Internet, while other licensed operators and internet service providers used Telkom wholesale and bit-stream products. The company also supplied the copper access network on which many competing ADSL offers depended. It later trialled and expanded faster VDSL, fibre and other access technologies as consumer demand shifted from legacy copper services to higher-capacity broadband. The group's enterprise scope broadened through managed connectivity, data services, hosting, cloud, applications and IT infrastructure management. Its pan-African strategy included investments in Africa Online and Nigeria's Multi-Links, intended to create regional hubs for voice, data and managed services. In South Africa, Cybernest developed data-centre and associated infrastructure capabilities, while BCX became the principal enterprise IT platform within the group. Telkom acquired Business Connexion in 2015 after an earlier attempt had not proceeded. Competition authorities imposed conditions, including measures intended to limit the employment impact of the transaction. The combination gave Telkom a stronger value proposition for corporate and public-sector customers by bringing telecommunications infrastructure together with IT integration and managed-services capabilities. In 2018, FastNet's enterprise wireless activities were incorporated into BCX. Openserve became the group's infrastructure-focused business, deploying fibre-to-the-home networks and supplying wholesale services to internet service providers. It joined the Internet Service Providers' Association of South Africa in 2021. Telkom also used partnerships to extend its consumer digital proposition, including the launch of Telkom Music powered by JOOX in 2021. Telkom's history has also been marked by controversy. Consumers and businesses criticised its former fixed-line and international-connectivity dominance, relatively high access costs, ADSL traffic caps and traffic-shaping policies. A 2007 public campaign organised by the Telecoms Action Group used newspaper advertising to express dissatisfaction with the company's conduct and the wider telecommunications environment. Telkom was also involved in a contract dispute with Telcordia that resulted in an adverse Supreme Court of Appeal decision. In 2013, allegations relating to procurement, nepotism and mismanagement added to scrutiny of the company. Financial performance was uneven, with the group reporting a large loss in the 2023 financial year. In 2024, however, Telkom reported a substantial recovery, including a profit of about ZAR 1.88 billion and assets above ZAR 61 billion. The company continues to operate as a South African-listed telecommunications group with significant government and institutional shareholdings, combining consumer, mobile, wholesale infrastructure and enterprise technology businesses.

2024
Reported earnings recovery
[1]Telkom (South Africa)en.wikipedia.org
Telkom reported a return to profit after a substantial loss in the previous financial year.
2021
Telkom Music introduced
[1]Telkom (South Africa)en.wikipedia.org
Telkom launched a music-streaming offering through a partnership involving Tencent Africa and JOOX.
2015
Business Connexion acquired
[1]Telkom (South Africa)en.wikipedia.org
The acquisition strengthened Telkom's enterprise IT and managed-services capabilities.
2010
8ta mobile network launches
[1]Telkom (South Africa)en.wikipedia.org
Telkom launched its own public mobile service under the 8ta name.
2008
Vodacom stake sold
[1]Telkom (South Africa)en.wikipedia.org
Telkom sold its interest in Vodacom and pursued a separate mobile-network strategy.
1994
Entry into mobile communications
[1]Telkom (South Africa)en.wikipedia.org
Telkom partnered with Vodafone in the venture that developed into Vodacom.
1991
Telkom is established
[1]Telkom (South Africa)en.wikipedia.org
The telecommunications function of the former Department of Post and Telecommunications was separated from the postal service.
1860
First telegraph connection
[1]Telkom (South Africa)en.wikipedia.org
A telegraph line connected Cape Town and Simonstown, marking an early milestone in South African telecommunications.

Products and positioning

A South African integrated telecommunications and digital-infrastructure group combining consumer connectivity, mobile services, wholesale networks and enterprise IT capabilities.

Wholesale telecommunications infrastructure
Openserve
Openserve is Telkom's licensed infrastructure and wholesale-services business. It builds and operates fixed networks, including fibre-to-the-home infrastructure, and supplies access and connectivity products to internet service providers and other licensed operators. Its role separates network infrastructure from retail service delivery and supports competition among downstream service providers.
Mobile telecommunications · 2010
Telkom Mobile
Telkom Mobile is the group's consumer and business mobile operation. It originated from the 8ta service launched in 2010 and provides mobile voice, messaging and data connectivity using successive generations of cellular technology. The business complements Telkom's fixed broadband and enterprise network portfolio.
Fixed broadband
Telkom Broadband
Telkom's fixed broadband portfolio has included ADSL, ADSL2+, VDSL and fibre access. Earlier copper products were sold with fixed voice access and could be paired with internet accounts from Telkom or other ISPs. As network technology evolved, the portfolio shifted toward higher-speed fibre and other modern access services.
Enterprise IT and managed services · 2015
BCX
BCX is Telkom's enterprise technology business. It provides information-technology integration, managed connectivity, cloud-related capabilities, applications and infrastructure services to corporate and public-sector customers. Business Connexion became part of the group through Telkom's 2015 acquisition, and FastNet's enterprise wireless activities were later integrated into BCX.
Data-centre and infrastructure services
Cybernest
Cybernest focuses on Telkom's data-centre infrastructure in Cape Town, Pretoria and Johannesburg. Its services have included data hosting, local-area-network and application management, and IT infrastructure management for large business customers.
Digital music service · 2021
Telkom Music powered by JOOX
Telkom Music was a South African music-streaming offering introduced through a partnership with Tencent Africa and delivered through the JOOX application. It represented an expansion from connectivity into digital content and consumer services.

Controversies

2019
Court rules against Telkom over cellphone masts
In a legal dispute over the installation of cellphone masts, South Africa's Supreme Court of Appeal ruled against Telkom. The court dismissed Telkom's argument that it could install cellphone masts without prior City approval. The ruling affirmed that Telkom is bound by Cape Town's municipal planning bylaw.
Source
2013
Procurement, nepotism and management allegations
Telkom faced allegations involving poor procurement practices, nepotism and mismanagement. The allegations contributed to scrutiny of governance and operational decision-making at the company.
Source
2007
Public criticism over market dominance and access costs
Consumer and business groups criticised Telkom's historic dominance of fixed-line and international connectivity, arguing that market power and regulatory conditions contributed to high telecommunications costs.
Source

Marketing campaigns

2007Telecoms Action Group public outcry
South Africa
The Telecoms Action Group organised a full-page newspaper advertisement funded by dissatisfied individuals and businesses. The campaign criticised aspects of Telkom's conduct and sought broader public attention for concerns about South Africa's telecommunications market.
Outcome. It amplified public and business criticism of telecommunications pricing and market structure.
Source

Brand decisions

2021
Launch of Telkom MusicProduct launch
Background
Telkom sought to broaden its consumer proposition beyond connectivity through digital content services.
Action taken
Telkom partnered with Tencent Africa to launch Telkom Music through the JOOX application in South Africa.
Aftermath
The service extended Telkom's brand into music streaming, although its current operating status is not established here.
Source
2015
Acquisition of Business ConnexionM&A
Background
Telkom sought to establish a stronger position in South Africa's information-technology and enterprise-services market.
Action taken
Telkom acquired Business Connexion for approximately ZAR 2.6 billion, subject to competition-authority conditions.
Aftermath
The integration combined telecommunications infrastructure with IT integration and managed-services capabilities for corporate and public-sector customers.
Acquisition consideration. Approximately ZAR 2.6 billion (2015)
Source
2008
Exit from Vodacom and develop a proprietary mobile operationStrategy
Background
Telkom had helped establish the South African mobile market through its partnership with Vodafone, but later chose to pursue a separate mobile network and brand.
Action taken
Telkom sold its interest in Vodacom and invested in its own mobile service, initially branded 8ta.
Aftermath
The mobile business launched publicly in 2010 and was subsequently renamed Telkom Mobile.
Source

Recent events

2024
Telkom reports a financial turnaround[1]Telkom (South Africa)en.wikipedia.org
Other
After a reported loss in the prior financial year, Telkom reported a profit of approximately ZAR 1.88 billion for 2024.
2021
Telkom Music launches with JOOX[1]Telkom (South Africa)en.wikipedia.org
Product launch
Telkom partnered with Tencent Africa to offer a South African music-streaming service through the JOOX platform.
2019
Telkom introduces cloud gaming service with Gamestream[4]Telkom与Gamestream合作推出云游戏服务en.wikipedia.org
Product launch
Telkom Indonesia cooperated with Gamestream to launch a cloud-gaming service, placing the company among early Asian telecommunications operators to enter this segment.
2017
Telkom-3S satellite successfully launches[4]Telkom与Gamestream合作推出云游戏服务en.wikipedia.org
Product launch
The Telkom-3S replacement satellite was successfully launched aboard an Ariane 5 rocket.
2015
Telkom completes Business Connexion acquisition[1]Telkom (South Africa)en.wikipedia.org
M&A
Telkom acquired Business Connexion to expand its presence in information technology and enterprise services.
2014
Telkom delists from London and Tokyo exchanges[4]Telkom与Gamestream合作推出云游戏服务en.wikipedia.org
Other
Telkom shares ceased trading on the London Stock Exchange and were deregistered from the Tokyo Stock Exchange during 2014.
2012
Telkom-3 satellite is lost after launch failure[4]Telkom与Gamestream合作推出云游戏服务en.wikipedia.org
Other
The Telkom-3 satellite was left in an unusable orbit after the failure of the launch vehicle's upper stage.
2010
Telkom launches 8ta mobile service[1]Telkom (South Africa)en.wikipedia.org
Product launch
Telkom publicly launched its own cellular service under the 8ta brand, later renamed Telkom Mobile.
2009
Telkom begins broader business transformation[4]Telkom与Gamestream合作推出云游戏服务en.wikipedia.org
Other
Telkom began repositioning itself beyond traditional telecommunications toward information technology, media, entertainment, infrastructure, systems, organization, and digital services.
2008
Telkom sells its interest in Vodacom[1]Telkom (South Africa)en.wikipedia.org
M&A
Telkom disposed of its stake in Vodacom as it moved toward developing its own mobile network and brand.

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