Telkom singles out convergence competitors

Telkom has singled out a number of potential competitors who may lay claim to the title of South Africa’s leading converged telecoms operator in the coming years.

The group aims to marry its fixed, mobile and data offerings into a single solution and will also launch cloud services for business in Q3-Q4.

Telkom Business managing director, Brian Armstrong recently reiterated the group’s intention to lead in convergence.

He said that Telkom commanded a 95% share in fixed voice, but only as 16% share in converged ICT.

In an interview with BusinessTech, Armstrong said that he expects a shake-out in the unified communications space, with fewer competitors in the market.

“Certainly unified communications, we [Telkom] know who is trying to play, Vodacom, MTN, Internet Solutions, and Dimension Data. But none of them actually have all the building blocks necessary to deliver a compelling, full unified communications offer, which we do.”

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.

M&A

Armstrong highlighted a dynamic telecoms market in SA within the next five years, with a proliferation of players.

“I think we are a good few years away from the consolidation phase, but I do think that in getting there, you will see M&A as people try to supplement the missing parts. Everybody is trying to build the puzzle; the likes of mobile operators do not have a fixed-line offering. It would make sense for one of them to buy a Vox (Telecoms), maybe,” Armstrong said.

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Telkom singles out convergence competitors