Telkom cock-a-hoop over convergence

Telkom has pointed to a saving of between 20-30% through its converged bundles which it launched on Wednesday (20 June), with the promise of additional deals in the coming weeks.

Telkom aims to marry its fixed, mobile and data offerings into a single solution under a political-esque slogan of “one bill, one service provider”.

The group also aims to launch cloud services for business in Q3-Q4.

Telkom Business managing director, Brian Armstrong reiterated the group’s intention to lead in convergence, speaking at a press function in Pretoria on Wednesday. In September 2011, he underlined a converged future for the telecoms operator, when speaking at the launch of Telkom Business Mobile.

According to the business lead, the SA ICT market was valued at R196.4 billion in 2009, and is set to reach R263.4 billion in 2014.

He said that Telkom commanded a 95% share in fixed voice, but only as 16% share in converged ICT, “which means we are big enough to matter”.

Telkom says that 73% of mobile calls in SA originate in proximity of a fixed line, while 45% terminate in proximity of a fixed line.

Armstrong noted that the level of fixed mobile convergence (FMC) was still relatively low in international markets and driven by discounting.

As such, Telkom unveiled three promotional deals, priced between R469/month and R969/month, and with the promise of another two dozen products over the coming two weeks.

Telkom says it will continue to launch “value based deals”, in tandem with standard pricing offerings.

Armstrong notes that revenue for traditional fixed voice will continue to decline, with the same set to happen for mobile voice, but only in the distant future.

Telkom’s business head said the group will be launching additional cloud services for business potentially in Q3. “Our cloud journey has a far more compelling offering for small business going forward.”

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Telkom cock-a-hoop over convergence