SA’s largest mobile company, Vodacom, is taking on its former parent, Telkom, as it launches an ADSL service into the corporate sector – with plans to eventually cut out Telkom’s copper last mile.
The company could also try and usurp Telkom’s dominant position in the residential market, but has yet to make an announcement as to whether it will launch fixed broadband to homeowners.
Vodacom’s venture into fixed broadband could further unsettle Telkom, which has pinned some of its growth plans on launching a mobile offering sometime this year. Telkom has seen a steady decrease in the number of voice only fixed-lines, although its data penetration is growing.
Telkom reported flat revenue growth for the year to March, and outgoing CEO Rueben September emphasised the importance of mobile as a strategy to defend and grow its local market share. He said the company was aware of the risks of launching as SA’s fourth mobile operator.
Now Vodacom has taken the battle for market share onto Telkom’s turf, in a move that could herald the first step towards fibre to the home.
Gary Hart, executive head of Managed Network Services at Vodacom Business, says the company will eventually be fighting Telkom for market share on Telkom’s turf, but is currently reliant on the fixed-line operator for use of its last mile.
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