Government has been under pressure to end Telkom's monopoly early in face of criticism that this is hampering growth of the Internet, electronic commerce and data networks. But JSE analysts say government will follow a gradual liberalisation policy. Valuations for Telkom range between R50bn and R120bn. The final price will be determined by international conditions for telecoms stocks and whether government is able to clarify its policy framework and restore much-needed credibility to its tarnished regulator in time With possibly less than a year left to the IPO and competition coming shortly thereafter, Telkom has accelerated its restructuring programme to become more efficient. Over the past three years R26bn has been invested in modernising and expanding the network.
Customer service remains a key focus.
The implementation of the right technologies and procedures, staff training, and the recruitment of the right people will go a long way in improving customer service. Telkom is ahead of its cumulative three-year line roll out and digitisation targets, says Nxasana. It missed only one out of 16 licence targets in the past financial year. Six noncore entities including workshops, vehicle fleets and restaurants have been outsourced during the past 18 months. These divisions were bought by specialised organisations that had the expertise and economies of scale to run them efficiently and cost-effectively, says Nxasana.