Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Provinces ordered to enforce ban on online casinos

      Provinces ordered to enforce ban on online casinos

      27 February 2026
      Liquid secures nearly R10-billion in new funding - Liquid Intelligent Technologies

      Liquid secures nearly R10-billion in new funding

      27 February 2026
      MTN Nigeria in dramatic full-year turnaround - Karl Toriola

      MTN Nigeria in dramatic full-year turnaround

      27 February 2026
      Global GPU shortage set to deepen gaming industry woes

      Global GPU shortage set to deepen gaming industry woes

      27 February 2026
      Netflix walks away from Warner Bros deal

      Netflix walks away from ‘irrational’ Warner Bros deal

      27 February 2026
    • World

      Stripe mulling bid for PayPal: report

      25 February 2026
      Xbox chief Phil Spencer retires from Microsoft

      Xbox chief Phil Spencer retires from Microsoft

      22 February 2026
      Prominent Southern African journalist targeted with Predator spyware

      Prominent Southern African journalist targeted with Predator spyware

      18 February 2026
      More drama in Warner Bros tug of war

      More drama in Warner Bros tug of war

      17 February 2026
      Russia bans WhatsApp

      Russia bans WhatsApp

      12 February 2026
    • In-depth
      The last generation of coders

      The last generation of coders

      18 February 2026
      Sentech is in dire straits

      Sentech is in dire straits

      10 February 2026
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
      Digital authoritarianism grows as African states normalise internet blackouts

      Digital authoritarianism grows as African states normalise internet blackouts

      19 December 2025
    • TCS
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E4: ‘We drive an electric Uber’

      10 February 2026
      TCS+ | How Cloud On Demand is helping SA businesses succeed in the cloud - Xhenia Rhode, Dion Kalicharan

      TCS+ | Cloud On Demand and Consnet: inside a real-world AWS partner success story

      30 January 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E3: ‘BYD’s Corolla Cross challenger’

      30 January 2026
      Watts & Wheels S1E4: 'We drive an electric Uber'

      Watts & Wheels S1E2: ‘China attacks, BMW digs in, Toyota’s sublime supercar’

      23 January 2026

      TCS+ | Why cybersecurity is becoming a competitive advantage for SA businesses

      20 January 2026
    • Opinion
      The AI fraud crisis your bank is not ready for - Andries Maritz

      The AI fraud crisis your bank is not ready for

      18 February 2026
      A million reasons monopolies don't work - Duncan McLeod

      A million reasons monopolies don’t work

      10 February 2026
      The author, Business Leadership South Africa CEO Busi Mavuso

      Eskom unbundling U-turn threatens to undo hard-won electricity gains

      9 February 2026
      South Africa's skills advantage is being overlooked at home - Richard Firth

      South Africa’s skills advantage is being overlooked at home

      29 January 2026
      Why Elon Musk's Starlink is a 'hard no' for me - Songezo Zibi

      Why Elon Musk’s Starlink is a ‘hard no’ for me

      26 January 2026
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Opinion » Duncan McLeod » This is not your parents’ Telkom

    This is not your parents’ Telkom

    By Duncan McLeod7 September 2014
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Duncan-McLeod-180-profileOver the past 20 years, Telkom has been through the wringer. It’s been abused by politicians and by greedy foreign investors, and it’s made spectacular strategic and operational mistakes that have cost it billions.

    But somehow, through all of this, it’s arrived at a point today under CEO Sipho Maseko and his leadership team where it’s making pretty smart decisions, decisions that have the potential to change not only Telkom for the better but improve South Africa’s broader telecommunications landscape.

    Telkom has started talking a language one simply wouldn’t have expected of an incumbent fixed-line operator. It’s a big change in approach. Fifteen years ago, when Telkom was in effect controlled by America’s SBC Communications (now AT&T) and Telekom Malaysia, the company behaved like a playground bully, riding roughshod over the regulator and thumbing its nose at government by abusing its monopoly and forcing through huge price increases.

    Today, its monopoly is all but gone. Telkom is being forced, through competitive pressures and regulatory oversight, to become more efficient, to improve its service levels and to ensure it doesn’t treat external service providers worse than its own retail division.

    Telkom has realised somewhat belatedly that it must work with other Internet service providers (ISPs) if it wants to defend and grow its fixed broadband business. The number of in-service broadband lines based on copper digital subscriber line (DSL) technology has stagnated below a million. Telkom now says it wants ISPs to help it justify its planned investments in home fibre and higher-speed copper access technologies by identifying and stimulating consumer demand.

    But remarks by Maseko this week go beyond even this rapprochement. He spoke of embracing the open-access model in its last-mile network into homes and businesses. Not only is Telkom’s wholesale division planning to make its fibre-to-the-home network available on an open-access basis to service providers when it’s launched later this year, but, if it works, it is entertaining the idea of making open access core to its operating philosophy.

    Of course, words are cheap. ISPs that have been at the receiving end of Telkom’s anticompetitive behaviour in the past can’t be blamed for not believing that the leopard has changed its spots until there’s tangible proof of this. Still, the fact that Telkom is even entertaining the open-access model is significant.

    Some will argue it has no choice. Rather than trying to do everything itself — the vertically integrated model that incumbents tend to favour — it needs an ecosystem of partners to help grow demand for next-generation broadband. Television, cloud computing, educational tools, home surveillance — the company can’t hope to provide all these services on its own, let alone supply consumers with best-in-class products in areas that are not its core business, such as video on demand. While open access facilitates robust competition at the services level, there’s less infrastructure duplication and the business case for home fibre networks is better.

    Sipho Maseko
    Sipho Maseko

    In practical terms, consumers may not even engage with Telkom for fixed broadband in future. Even though they’ll use the company’s infrastructure, their relationship could be entirely with another company.

    While ISPs may treat Telkom with scepticism, they should assume Maseko and his team are serious. Through their industry body, the Internet Service Providers’ Association, they should engage with Telkom on how it plans to implement open access. They should not let historical issues get in the way of an open discussion about growing broadband in South Africa.

    “There needs to be a quid pro quo,” Maseko said this week. “It mustn’t harm the firm or destroy the goose that lays the golden eggs. From the start, we will ring-fence fibre and see how the market responds to it. We will then reflect on this, on how we deal with copper.”

    Last month, Telkom chopped wholesale prices for its fastest copper-based broadband lines. Further price cuts to wholesale services are in the works. Maseko said Telkom wants to “rebase” its wholesale fees to stimulate demand. This, perhaps more than anything, demonstrates that this is not the company it once was.

    • Duncan McLeod is editor of TechCentral. Find him on Twitter
    • This column was first published in the Sunday Times
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    AT&T Duncan McLeod Ispa SBC Communications Sipho Maseko Telekom Malaysia Telkom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleRegional PC market returns to growth
    Next Article Beware online credit ‘fixers’

    Related Posts

    Hold the doom: the case for a South African comeback

    Hold the doom: the case for a South African comeback

    26 February 2026
    The real reason MTN is bringing its towers back in-house

    The real reason MTN is bringing its towers back in-house

    22 February 2026
    Icasa gears up for South Africa's next big spectrum auction - Tshiamo Maluleka-Disemelo

    Icasa gears up for South Africa’s next big spectrum auction

    17 February 2026
    Company News
    Galaxy S26 brings proactive AI, pro-grade video and a privacy breakthrough

    Galaxy S26 brings proactive AI, pro-grade video and a privacy breakthrough

    27 February 2026
    Cell C to SMEs: We'll be your partner, not just a provider - Cell C Business

    Cell C to SMEs: We’ll be your partner, not just a provider

    27 February 2026
    The data sovereignty paradox - Altron Digital Business

    The data sovereignty paradox

    27 February 2026
    Opinion
    The AI fraud crisis your bank is not ready for - Andries Maritz

    The AI fraud crisis your bank is not ready for

    18 February 2026
    A million reasons monopolies don't work - Duncan McLeod

    A million reasons monopolies don’t work

    10 February 2026
    The author, Business Leadership South Africa CEO Busi Mavuso

    Eskom unbundling U-turn threatens to undo hard-won electricity gains

    9 February 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Galaxy S26 brings proactive AI, pro-grade video and a privacy breakthrough

    Galaxy S26 brings proactive AI, pro-grade video and a privacy breakthrough

    27 February 2026
    Provinces ordered to enforce ban on online casinos

    Provinces ordered to enforce ban on online casinos

    27 February 2026
    Liquid secures nearly R10-billion in new funding - Liquid Intelligent Technologies

    Liquid secures nearly R10-billion in new funding

    27 February 2026
    Cell C to SMEs: We'll be your partner, not just a provider - Cell C Business

    Cell C to SMEs: We’ll be your partner, not just a provider

    27 February 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}