Telkom Mobile, a network operator that was initially launched as 8ta in 2010, has confirmed its commitment to continue investing in last-mile mobile network infrastructure, distinguishing itself from rival Cell C.
Lunga Siyo, CEO of Telkom’s consumer business, emphasized in an interview with TechCentral that Telkom Mobile has solidified its position as a long-term player in South Africa’s telecommunications market. Siyo dismissed the notion that there needs to be more room for a third infrastructure player, pointing to Telkom Mobile’s recent achievement of 20 million active Sims as evidence of the company’s robust presence. Telkom Mobile is the third largest South African mobile market player, surpassing Cell C and trailing behind Vodacom and MTN.
Siyo referenced international studies indicating that reaching a 15% market share significantly enhances survival prospects, with a 20% market share signifying the establishment of a sustainable business. With a 19% market share based on active SIM cards, Siyo affirmed Telkom Mobile’s sustainable growth trajectory, supported by positive EBITDA and service revenue expansion exceeding the market average.
Telkom Mobile’s resilience during the Covid-19 pandemic, reflected in a peak Ebitda margin of over 30%, reinforced its positioning as a data-centric player. Siyo projected that as voice revenues diminish, the EBITDA margins of Vodacom and MTN would similarly decline. He underscored the need for strategic market consolidation while cautioning against undermining competition.
Siyo advocated for regulated infrastructure sharing to enhance network efficiency, potentially leading to lower prices or increased consumer value. Discussions around infrastructure sharing have already received regulatory exemptions to mitigate the impact of load shedding.
The article outlines Telkom Mobile’s firm commitment to long-term growth and sustainability in South Africa’s telecommunications landscape, emphasizing its strategic evolution and market relevance.
