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What is material in our value-creation process
Material themes

Our material themes represent a prioritised view of our material matters as determined by the materiality determination process (page 19).

Material theme Impacted by Reference to further information
Regulatory environment

Regulatory environment

Telkom operates in a highly regulated environment. Policy uncertainty surrounding both the ICT White Paper and ICASA's calls for increased access to a wide range of affordable, high-quality communication services, among others, makes the future less certain.

  • Policy uncertainty and inconsistency
  • Misalignment between ICASA and DTPS regarding the allocation of spectrum
  • Continuously evolving regulations and legislation
  • International regulatory trends influencing local regulation, irrespective of the different operating context
  • Political environment
  • Resources required to implement new or changing regulations
Intense competitive landscape

Intense competitive landscape

The competitive landscape has changed with OTT players and other non-traditional entrants disrupting the market and the convergence of telecommunications, technology, media and consumer electronics. This provides Telkom with collaboration opportunities with OTT players.

  • New market entrants
  • Market consolidation
  • New lines of business and products
Customer expectation and experience

Customer expectation and experience

Telkom's customers have growing expectations around quality, price and available products and services. Customer experience impacts Telkom's reputation and customer attraction and retention.

  • Continuously changing product and service needs
  • Expectations of data security
  • Investment required to meet customer expectations
  • Service reliability and quality
  • Intense competitive landscape
Cyber incidents (new)

Cyber incidents (new)

Cyber attacks and data breaches have the potential to directly impact Telkom's service levels, leading to client dissatisfaction, reputational damage, business disruption and loss of revenue. This risk provides us with opportunities for new customer solutions.

  • Cybersecurity
  • Business continuity plans
Economic climate (new)

Economic climate (new)

Local and international economies impact Telkom's ability to grow the business, the cost of doing business and customers' spending power.

  • Muted South African economic performance
  • Political environment
  • Investor and business confidence
  • Socio-economic factors, such as high youth unemployment rate
B-BBEE certification transformation

B-BBEE certification transformation

Transformation is a social imperative for Telkom, and our B-BBEE certification rating significantly impacts the ability to attract business, especially for BCX.

  • ICT sector codes
  • Opportunities for positive socio-economic impacts
Climate change (new)

Climate change (new)

To protect our business and the environment, Telkom needs to mitigate and adapt to climate change's impacts and use our resources responsibly.

  • Business continuity plans
  • Western Cape drought
People skills and expertise

People skills and expertise

Telkom requires skilled employees in ICT, digital and other areas to develop products and solutions to generate future revenue.

  • Talent attraction and retention
  • Gender equality and transformation targets
  • Competition for skills in a small market, and with non-traditional players
  • Premium paid for skills and experience
  • Scarcity of certain specialised, technical skills locally and globally
  • Fourth Industrial Revolution (future skills)
  • Skills development for Telkom, the industry and the country
Evolving technology and ICT market trends

Evolving technology and ICT market trends

We need to remain abreast of advances in ICT and disruptive technology, and ensure long-term viability developing innovative products and services and enhancing our networks and infrastructure.

  • The pace of technological change
  • NGN and infrastructure investment
  • Cost of new product and service development
  • Skilled employees to support product development and delivery