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
      Nedbank hires MTN's former tech chief as group CIO - Nikos Angelopoulos

      Nedbank hires MTN’s former tech chief as group CIO

      31 July 2026
      Eskom's diesel bill falls 86% as breakdowns hit eight-year low

      Eskom’s diesel bill falls 86% as breakdowns hit eight-year low

      31 July 2026
      Ramaphosa signs off on taking the grid away from Eskom

      Ramaphosa signs off on taking the grid away from Eskom

      31 July 2026
      Microsoft just had the biggest day in stock market history

      Microsoft just had the biggest day in stock market history

      31 July 2026
      MTN Nigeria's growth engine stalled in second quarter - Karl Toriola

      MTN Nigeria’s growth engine stalled in second quarter

      31 July 2026
    • World
      Meta AI will now tell parents if their teen is in crisis

      Meta AI will now tell parents if their teen is in crisis

      17 July 2026
      IBM shares crash 25% as AI upends software spending - Arvind Krishna

      IBM shares crash 25% as AI upends software spending

      15 July 2026
      Jony Ive's first OpenAI device: an AI smart speaker - Jony Ive and Sam Altman

      Jony Ive’s first OpenAI device: an AI smart speaker

      15 July 2026
      Stripe, Advent in talks to buy PayPal for $53-billion

      Stripe, Advent in talks to buy PayPal for $53-billion

      15 July 2026
      Memory crisis sends smartphone market into steep decline

      Memory crisis sends smartphone market into steep decline

      13 July 2026
    • In-depth
      The plan to stop AI from breaking the world - Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
      AI boom sparks rally, frenzy and fear

      AI boom sparks rally, frenzy and fear

      11 June 2026
      Every plug-in hybrid on sale in South Africa, ranked by price - Lamborghini Temerario

      Every plug-in hybrid on sale in South Africa, ranked by price

      7 June 2026
      What Wi-Fi 8 will mean for wireless networks

      What Wi-Fi 8 will mean for wireless networks

      1 June 2026
    • TCS
      TCS+ | Why South African workers must become supervisors of digital labour - Accelera Digital Group Cliff de Wit

      TCS+ | Why South African workers must become supervisors of digital labour

      31 July 2026
      TCS | Rapid deployment rules can't work without municipalities: ACT - Nomvuyiso Batyi

      TCS | Icasa’s rules skip the real bottleneck: ACT

      30 July 2026
      TCS+ | iStore Business on why Apple makes sense for SMEs - Sudesh Pillay and Tamia Nontsikelelo

      TCS+ | iStore Business on why Apple makes sense for SMEs

      30 July 2026
      TCS+ | A smarter approach to cloud for South African businesses - Joel Chacko and Jonathan Oaker

      TCS+ | A smarter approach to cloud for South African businesses

      28 July 2026
      TCS | How Optasia lends billions to people banks can't see - Salvador Anglada

      TCS | How Optasia lends billions to people banks can’t see

      23 July 2026
    • Opinion
      The author, Jannie van Zyl

      Selling vapour is corporate suicide in slow motion

      16 July 2026
      Brazil's online gambling crackdown is a lesson for South Africa

      How Amazon outmanoeuvred Starlink in South Africa

      15 July 2026
      The Popia problem with agentic AI - Herman Haasbroek

      The Popia problem with agentic AI

      14 July 2026
      The author, Fanie van Rooyen

      South Africa can still catch the AI wave – here’s how

      7 July 2026
      The author, Fanie van Rooyen

      The AI utopia South Africa can’t afford

      1 July 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM Telecom
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • 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
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • 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

    Fat bonuses at Telkom despite group missing own targets - Serame Taukobong

    Fat bonuses at Telkom despite group missing own targets

    23 July 2026
    Openserve hits back in fibre ISP row

    Openserve hits back in fibre ISP row

    20 July 2026
    Openserve launches its own ISP, rattling wholesale partners

    Openserve launches its own ISP, rattling wholesale partners

    13 July 2026
    Company News
    Domains.co.za launches self-hosted n8n VPS hosting

    Domains.co.za launches self-hosted n8n VPS hosting

    31 July 2026
    Smarter.tech '26 shows why smarter technology begins with context - Obsidian Systems

    Context is the missing piece in enterprise AI: Obsidian

    31 July 2026
    Huawei launches 12 intelligent transport solutions in South Africa - Sam Tang

    Huawei launches 12 intelligent transport solutions in South Africa

    30 July 2026
    Opinion
    The author, Jannie van Zyl

    Selling vapour is corporate suicide in slow motion

    16 July 2026
    Brazil's online gambling crackdown is a lesson for South Africa

    How Amazon outmanoeuvred Starlink in South Africa

    15 July 2026
    The Popia problem with agentic AI - Herman Haasbroek

    The Popia problem with agentic AI

    14 July 2026

    Subscribe to Updates

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

    Latest Posts
    Nedbank hires MTN's former tech chief as group CIO - Nikos Angelopoulos

    Nedbank hires MTN’s former tech chief as group CIO

    31 July 2026
    Eskom's diesel bill falls 86% as breakdowns hit eight-year low

    Eskom’s diesel bill falls 86% as breakdowns hit eight-year low

    31 July 2026
    Ramaphosa signs off on taking the grid away from Eskom

    Ramaphosa signs off on taking the grid away from Eskom

    31 July 2026
    TCS+ | Why South African workers must become supervisors of digital labour - Accelera Digital Group Cliff de Wit

    TCS+ | Why South African workers must become supervisors of digital labour

    31 July 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • 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}