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Telkom Integrated Report 2017
40
Material themes and what they mean forTelkom
Material
themes
Our material themes represent a prioritised view of our inherent risks and opportunities as determined by the
materiality determination process (page 40). Following the determination of our material matters, the below
were identified as the key material themes that are addressed throughout this report.
Each of the material themes identified cross-references to the risk profile depicted on the risk heat map tabled
on page 52.
Context toTelkom Related key risks
Strategic response
1. Evolving technology and ICT market trends
Forming an accurate assessment of
where the ICT market is headed and
which products and services will be in
demand are critical to long-term viability.
The immediate business opportunities
lie within products and services around
IoT, cloud and data, and analytics over
and above the opportunities through
investments in
5G technology
>
Revenue growth and profitability
>
Voice revenue decline
>
Inefficient outdated IT systems
>
Vertically integrated operating
model not sustainable
> Refer to our strategy section
on BCX, Openserve andTelkom
Consumer focus areas which
adresses the immediate business
opportunities on page 60
2. New generation network and infrastructure
Significant capital expenditure is
required in an ICT business to remain
ahead with the latest and fastest
technologies such as long-term
evolution (LTE) and fibre.
Capital spend for rehabilitation of
networks, including theft prevention
and reduction, will form part of IT
infrastructure projects, andTelkomhas
internal infrastructure requirements.
In order to support service delivery
to clients, our own network and IT
infrastructure needs continuous
upgrading. Separate “stacks” or network
infrastructure modules supporting billing
and operational capability need to be
built to support the business
>
Revenue growth and profitability
>
Financial stability
>
Inefficient outdated IT systems
>
Information security
>
Network transformation
> Refer to our strategy section on
Openserves’ focus areas relating
to our network and infrastructure
on page 60
> Refer to the GCFO’s report
(financial capital section) on
page 66 for our five key capex
investments
> Refer to intellectual capital on
page 74 on how we continue to
rationalise our legacy systems
to be fit for purpose, replacing
archaic systems with simpler,
more efficient systems where
possible to enable us to become
a more effectiveTelkom for
the future
60
60
66
74
52