Telkom CEO Sipho Maseko has told staff in an internal letter that successes achieved over the past year – under extremely challenging circumstances – have reinforced that “Telkom is a remarkable place, with remarkable people”.
In the letter Maseko reflects on his first year at the helm of Telkom, saying that he came to the company recognising that it has “enormous challenges”.
He noted that, while Telkom has had a “few good wins” in the past year, the company has to “face up to a hard truth” as it turns to the next financial year.
“We still need to do a lot more,” Maseko wrote. “We must recognise that we have a challenging year ahead of us, one that will require even more effort from all of us.”
Maseko said that, despite these challenges, efforts to turn Telkom around have already started to bear fruit.
The company lead said that Telkom has overcome challenges in many ways in the past year:
- Resolved all outstanding Competition Commission issues;
- Undertook a R12 billion non-cash impairment of legacy assets;
- Managed pension fund liability;
- Renewed executive leadership team with experts in their respective fields;
- Created an “industry leading partnership” to advance its mobile business;
- Introduced cost-saving measures and turn-around plans that have resulted in significant savings;
- Recorded significant improvements in consumer satisfaction reported in the Orange Index survey; and
- Received awards for the “Best fixed broadband service provider in SA” and the “Best mobile broadband operator in SA” at the annual MyBroadband Conference.
Growing shareholder confidence in Telkom has also lead to a share price increase from R11 to R33 in the past 12 months, Maseko said.
Among the areas that need improvement, Maseko said Telkom must focus on is its customer experience.
“This is our biggest challenge and our biggest opportunity,” Maseko wrote.
Maseko said that Telkom will focus on making it every employee’s job to improve the experience of its customers in the coming year.
The CEO also noted that the operator plans to launch “exciting new products and services”.