Telkom Integrated Report 2017

Telkom Integrated Report 2017

We are making significant investments in the development of the

skills of the future, and addressing the digital gap by supporting ICT-

related learnership programmes and programmes like WeThinkCode.

The FutureMakers programmes continues to support and develop

black entrepreneurs in the ICT sector and theTelkomFoundation is

invested in socio-economic programmes.

Regulatory challenges

This is due to the introduction of the integrated ICT policy,

which advocates an open-access dispensation in respect of future

allocation and holding of spectrum, and the use of electronic

communication facilities. In the short term, the industry awaits

the resolution of the impasse between the regulator and the

policy department on spectrum regulation. The industry further

awaits the migration of broadcasters from the spectrum bands

which have since been harmonised for international mobile

telecommunications.

Telkom continues to evaluate the changing policy and regulatory

landscape to ensure that it remains competitive; is able to mitigate

any adversity; and take advantage of emerging opportunities.

Evolving stakeholder engagement

Sustainable business requires buy-in from various stakeholders,

andTelkomengages with key stakeholders on an ongoing basis.

Feedback is crucial to sustainable value creation and the concerns

and needs of stakeholders influence our strategies.

Customers are becoming increasingly price sensitive. Considerations

such as these reinforce our integrated thinking to consider

stakeholder needs and concerns in all areas of our operations,

and to respond to these through our innovative products and

services. Our new operating model will look for internal and external

stakeholder needs. It considers the government and its policies,

shareholders and other providers of financial capital, and partners,

among others. The model enables the execution of our strategy.

Government remains a key stakeholder, as both a regulator and

provider of our licence to operate, and we are proud that our

relationship remains strong. A point of pride is our access to

productive dialogue to address policies and decisions that may

hinder the inclusive economic growth we seek.

The ICT sector is undergoing major changes which

will impact the current market structure and

competition dynamics.

Transformation

We continue to further

ingrain transformation

into our activities and

contribute positively

to the socio-economic

development of our

country.

Late in the financial year, the ICT

sector council together with the

Department of Trade and Industry

(DTI) introduced the amended

broad-based black economic

empowerment (B-BBEE) codes

for implementation by the ICT

sector. The amended codes have

stringent requirements and higher

targets compared to the old

codes and the draft ICT codes.

Had B-BBEE transformation not

remained one of our key material

issues from our turnaround

phase to the new journey of

independence, we could have

dropped to a Level 8. We have

recently completed the process

verification and we are a

Level 6 contributor. This Level 6

is discounted due to the changed

requirement in reporting for

skills development spend. Were

it not for this new requirement,

the scores on the scorecard

would have yielded us a Level 5.

We will focus on the reporting

requirement for this element

of the scorecard, and we are

confident that the programmes

that we continue to invest in and

focus on with all the other pillars,

will improve our level significantly

in next financial year.

We are already transforming our

group exco with the appointment

of two black women, chief human

resources officer, Melody Lekota,

and chief risk and compliance

officer, Tsholofelo Molefe.