The telecommunications industry is one that (most) South African consumers and businesses depend on heavily. Due to this, the nature of the industry is one of constant change in order to meet evolving customer needs and requirements. Priorities within telecoms service providers reflect these, and the results released by these providers indicate the most current and relevant demands of 21st century businesses and individual consumers.
Telkom’s interim results for the 6-month period ending 30 September 2013 showed an increase in revenue largely due to Mobile data and Business IT revenue increases. Fixed-line services revenue has decreased, but the company as a whole continues to show steady profit and share-price growth. Telkom Mobile subscribers have increased due to an increase in pre-paid subscribers. However, the same isn’t true of post-paid subscribers for the incumbent, despite offering the market cost-competitive products and services.
The results show that Telkom ADSL continues to grow. This could be largely attributed to the price decreases and speed increases implemented by Telkom during this period to ensure market competitiveness. In the 10 years since its launch, ADSL subscriber numbers have grown from 2,669 to 898,203 and in the last year growth has been 6.7%. Fixed-line numbers still show a steady decline and reflect a decrease of 181,000 lines (4.3% decline) when compared to last year’s results. Today’s demand for improved ADSL, mobility and data continues to increase both in South Africa and abroad.
Telkom CEO, Sipho Maseko, indicated during the release of these results that the company intends to focus on improving customer service in order to improve both efficiency and market perception. This is indicative of today’s consumer who depends upon impeccable and immediate customer service. Whilst Telkom’s position within the country remains solid, it would seem that the interim results released by the company reflect relevant market changes.