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
      Blu Label resumes dividends as it draws line under Cell C saga - Brett Levy

      Blu Label resumes dividends as it draws line under Cell C saga

      25 February 2026
      Mustek warns chip-supply crisis far from over

      Mustek warns chip-supply crisis far from over

      25 February 2026
      South Africa's draft AI policy headed to cabinet

      South Africa’s draft AI policy headed to cabinet

      25 February 2026

      Stripe mulling bid for PayPal: report

      25 February 2026
      Cut EV taxes now, industry implores Godongwana ahead of budget - Enoch Godongwana

      Cut EV taxes now, industry implores Godongwana ahead of budget

      24 February 2026
    • World
      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
      EU regulators take aim at WhatsApp

      EU regulators take aim at WhatsApp

      9 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
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » In-depth » Will Telkom start a mobile price war?

    Will Telkom start a mobile price war?

    By Editor6 July 2010
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Telkom SA MD Nombulelo "Pinky" Moholi

    With only a few months to go until Telkom launches SA’s fourth mobile network operator, the question on many people’s lips is whether the fixed-line incumbent will start a price war with Vodacom, MTN and Cell C.

    Telkom hasn’t yet finalised tariffs for its mobile offering. The company’s MD, Nombulelo “Pinky” Moholi, says these must be still be approved by the board.

    But she concedes that in the prepaid market price is a big factor. Asked whether Telkom will trigger a price war, Moholi tells TechCentral: “We are responsible. We will not do anything that is value destroying. But if it’s value enhancing we will do it. There’s a lot of room between the price of a fixed-line call and a mobile call.”

    She says competing is also not only about price. “You can offer better value and better network quality, too,” she says. “Of course, value to many people is about price.”

    Moholi says the mobile business, which will be launched before the December 2010 holiday season, will focus on both contract and prepaid consumers.

    But analysts have said Telkom’s opportunity in mobile is in the corporate market, where it will be able to cross-sell solutions, and not in prepaid. They have questioned whether Telkom should focus on the prepaid market at all, saying the only option in this space may be for Telkom to compete aggressively on price.

    “You can’t ignore the prepaid market,” Moholi says. “We are not saying the corporate market is not our target market, but we can’t ignore prepaid.”

    She says it’s “unfair” of analysts to suggest Telkom can focus only on the contract subscriber market, where the cost of customer acquisition is high. “We will not ignore prepaid, which is a very big volume business.”

    She concedes, however, that it’s in the contract market where Telkom will be able to offer products that are most differentiated from its rivals. “All I can say is that we are uniquely placed to offer differentiated services,” she says.

    “That doesn’t mean they’ll be available at launch. We will start with ‘me-too’ products at the beginning and roll out new services as we go.”

    Meanwhile, Moholi says Telkom’s new mobile operator will not be called Telkom Mobile. Rather, in the retail market at least, the company plans to come up with new branding.

    She says the company has a shortlist of two names for the new business, and will choose one of them once it has completed market research.

    In the business mobile market, it’s likely Telkom will retain its branding. It’s not yet clear whether the Telkom brand will feature at all in the consumer offerings.

    Moholi says Telkom’s market research has shown it should do well in both the prepaid and corporate segments.

    Telkom’s mobile network will offer both second- and third-generation services in the 1,8GHz and 2,1GHz bands. It will roam on MTN’s network outside the cities.  – Duncan McLeod, TechCentral

    • Subscribe to our free daily newsletter
    • Follow us on Twitter or on Facebook
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Cell C MTN Pinky Moholi Telkom Telkom Mobile Vodacom
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleNokia 5330 Mobile TV Edition reviewed
    Next Article Still no Red Sea light for Seacom

    Related Posts

    Blu Label resumes dividends as it draws line under Cell C saga - Brett Levy

    Blu Label resumes dividends as it draws line under Cell C saga

    25 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
    Blu Label takes R5.2-billion Cell C hit, touts clean slate ahead

    Blu Label takes R5.2-billion Cell C hit, touts clean slate ahead

    19 February 2026
    Company News
    Netstar and Sunshine Tour team up on data-driven golf analytics

    Netstar and Sunshine Tour team up on data-driven golf analytics

    24 February 2026
    Vox customers set to benefit from direct, optimised Google connectivity

    Vox customers set to benefit from direct, optimised Google connectivity

    24 February 2026
    The human side of AI - Altron Digital Business

    The human side of AI

    23 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
    Blu Label resumes dividends as it draws line under Cell C saga - Brett Levy

    Blu Label resumes dividends as it draws line under Cell C saga

    25 February 2026
    Mustek warns chip-supply crisis far from over

    Mustek warns chip-supply crisis far from over

    25 February 2026
    South Africa's draft AI policy headed to cabinet

    South Africa’s draft AI policy headed to cabinet

    25 February 2026

    Stripe mulling bid for PayPal: report

    25 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}