In a long anticipated move Telkom has launched the separation of its wholesale business unit from the rest of the company.
The new unit, called Openserve, will be a business unit within the Telkom Group. It has been formed as part of the company’s ongoing efforts to strengthen customer focus through a flexible and agile operating model.
Openserve will be an autonomous, stand-alone business unit within the group, and will be responsible for its own profit and losses.
Telkom CEO, Sipho Maseko, says that the separation of Openserve as a separate business unit will be critical for getting more South Africans online.
“Separation of Telkom’s wholesale division will drive greater focus on customers and allow the business to focus on future sources of competitive advantage,” said Maseko.
“Two years ago, we set out on a journey to transform Telkom, to turn the company around and to place it on a path to long-term growth and sustainability. Very little about the last two years has been easy.
We have tackled inefficiencies, complexity and high costs, while also reducing our debt, stabilising our mobile business and concluding our long-awaited Business Connexion acquisition.
Our quest to improve customer experience remains a primary focus,” said Maseko.
Alphonzo Samuels, former head of Telkom’s wholesale and network services and the new MD for Openserve, said the separation signals Telkom’s commitment to a more competitive market and lower prices for consumers.