Johannesburg - SA’s fixed line utility Telkom has unveiled its redesigned wholesale and networks division, which it has called Openserve.
Telkom has been migrating towards a functional split of the company to separate its retail and wholesale. This will also see the operator, majority owned by SA’s government, move towards an open-access network in line with government’s stated aim to be open-access.
The company, which has been battling dwindling revenues and falling fixed-line penetration, is being forced to reinvent itself in a world that is increasingly becoming digital. As part of this, it is cutting costs and unveiling a new way of thinking that embraces competition.
In a statement, the telco says Openserve will be a distinct business unit within the Telkom Group.
It says the unit has been “formed as part of the company’s ongoing efforts to strengthen customer focus through a more flexible and agile operating model”.
Telkom adds: “The separation heralds a new era in the Telkom Group as it prepares to welcome a more open-access environment and all the opportunities it offers. This move is also in line with Telkom’s turnaround strategy to separate its wholesale and retail divisions to facilitate greater focus, accountability and most importantly, customer-centricity.”
CEO Sipho Maseko notes the company’s turnaround strategy, which has seen it cutting costs and letting go of staff, has delivered positive results, but it is not yet complete.
“We have tackled inefficiency, complexity and high costs and our quest to improve our customer experience remains a primary focus. But to fundamentally change the way we do business, while also working to take up a meaningful and impactful role in an increasingly open-access environment, we have had to review our operating model.”
Telkom hopes Openserve will enable more choice, increased innovation and greater service-provider competition.
“The result will be increased broadband access. Telkom intends to play a substantial role in lowering the barrier to entry for new players and to increase the competitiveness of smaller players.”
IOL