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

      Britehouse breaks free from NTT Data

      10 July 2025

      Samsung’s bet on folding phones faces major test

      10 July 2025

      OpenAI to launch web browser in direct challenge to Google Chrome

      10 July 2025

      The satellite broadband operators taking on Starlink

      9 July 2025

      Yaccarino out: Musk’s handpicked CEO quits X suddenly

      9 July 2025
    • World

      Grok 4 arrives with bold claims and fresh controversy

      10 July 2025

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025

      Grammarly acquires e-mail start-up Superhuman

      1 July 2025

      Apple considers ditching its own AI in Siri overhaul

      1 July 2025

      Jony Ive’s first AI gadget could be … a pen

      30 June 2025
    • In-depth

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025
    • TCS

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025

      TCS+ | First Distribution on the latest and greatest cloud technologies

      27 June 2025

      TCS+ | First Distribution on data governance in hybrid cloud environments

      27 June 2025
    • Opinion

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025
    • 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
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • 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
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • 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


    Cell C MTN Pinky Moholi Telkom Telkom Mobile Vodacom
    Subscribe to TechCentral Subscribe to TechCentral
    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

    Vodacom, Maziv deal now looks likely after CompCom U-turn

    8 July 2025

    Sasol, Vodacom team up to modernise Secunda operations

    4 July 2025

    Vodacom’s influence on Maziv too strong to ignore: tribunal

    27 June 2025
    Company News

    Samsung unfolds the future with thinnest, lightest Galaxy Z Fold yet

    9 July 2025

    Huawei supercharges South African SMEs with over 20 new eKit products

    9 July 2025

    Webtonic cracks the talent code with AWS-powered TonicHub

    9 July 2025
    Opinion

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    Subscribe to Updates

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

    © 2009 - 2025 NewsCentral Media

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