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What is material in our value-creation process
Stakeholder engagement

Various stakeholders are integral to Telkom's existence and our strategic objectives.

We balance our stakeholders' needs with our responsibility to provide reliable products, services, and information and communication networks. We do this by building relationships on universal stakeholder management principles including trust, respect, transparency and constructive engagement.

We engage stakeholders according to our stakeholder engagement framework and policy. Our Stakeholder Engagement programme identifies stakeholders, endeavours to understand their various challenges and expectations, and aligns these to Telkom's strategic and operational objectives and targets.

During the year, we focused on formalising our stakeholder engagement framework and holding regular feedback sessions with stakeholder owners and monitoring action plans to implementation. During the year, we:

  • updated our stakeholder engagement framework and policy, including approval by the exco and the social and ethics committee; and
  • developed a review process to monitor the implementation of stakeholder management response strategies throughout the group.

For the next financial year we will focus on customers and improve customer experience across the group.

We are working towards improving all other stakeholder relationships across our stakeholder groups from being acceptable to strong.

Governance structure

Responsibility for stakeholder management flows from the board to management. Implementing our governance structure is essential to our stakeholder management objectives.

Level    How we work together to manage stakeholder relationships

Board of directors

The board drives the stakeholder engagement framework.


Social and ethics

The committee assists the board in fulfilling its responsibilities by ensuring that key stakeholder relationships are effectively managed and by approving the stakeholder engagement framework and policy.


Group chief executive

The GCEO ensures commitment to effective stakeholder management.


Executive committee

Critical stakeholder matters are built into the exco’s meeting agenda. The stakeholder management profile is reviewed and discussed. Specific members are assigned to monitor specific stakeholder groups.


Social, ethics and
sustainability council

We have recently re-established the council. The stakeholder matters and mitigation’s are monitored, among other agenda items. The council will convene monthly going forward. The stakeholder matters and mitigations are monitored, among other agenda items.


Head of stakeholder

Facilitates and monitors stakeholder management across all business units and implements the stakeholder management framework.



Management is the ultimate owner of stakeholder management matters and is Management responsible for managing response strategies.


Our stakeholders

and regulators
Customers Media Suppliers Communities Organised
Stakeholder diagram

Effectiveness of stakeholder engagement

Properly assessing stakeholder relationships is critical to management. It allows management to prioritise resources. The effectiveness of stakeholder engagements and relations are assessed based on the table below. We have assessed our investor relationships as strong, and the remaining relationships as acceptable.

Relationship quality Required response
Weak stakeholder relationship Weak stakeholder relationship High level of intervention required
Acceptable stakeholder relationship Acceptable stakeholder relationship       Moderate level of intervention required
Strong stakeholder relationship Strong stakeholder relationship          Low level of intervention required, if any


Stakeholders and importance to Telkom


Key concerns


Telkom's response


material themes

(page 31)


Investor community

Includes equity and debt investors, strategic shareholders and sell-side analysts.

The investor community creates access to equity and debt markets and ultimately drives demand for Telkom shares, thereby impacting our market capitalisation.

  • Telkom's ability to grow the business, and the drivers of future growth
  • Deceleration of the fixed business
  • High capital expenditure (capex) with no corresponding revenue growth and a negative free cash flow
  • Disappointing BCX performance since acquisition
  • Group strategy geared for growth, refer to page 39.
    • The mobile business is a key driver of growth for the group.
    • New generation revenue streams growth, offsetting the decline in traditional revenue.
  • Recovery of fixed data revenue growth trajectory set to improve and managing the decline in fixed voice revenue.
  • Mobile and fibre remain key capex focus areas with significant investment, which will create sufficient capacity within our network for the expected surge in data demand and required return. We aim to fund capex through long-term debt as we move to an optimal capital structure.
  • BCX's performance was mainly negatively impacted by the weak economy and a decline in voice revenue. BCX was also unable to bid for tenders as it was constrained by its B-BBEE certification rating. The B-BBEE certification rating for BCX has improved to level 3. This will provide BCX with an opportunity to bid for tenders going forward.
  • Economic climate
  • Evolving technology and ICT market trends

Government and regulators

Including Parliament, the Department of Telecommunication and Postal Services (DTPS), the Department of Communications, Competition Commission and ICASA.

Government and regulators set policies, legislation and regulations that impact the cost of doing business and the ability to derive a reasonable return on investment. They have the authority to penalise the group through fines for non-compliance.

  • Scarce resources (spectrum and fixed infrastructure)
  • Competition
  • B-BBEE certification compliance
  • Cost of communication
  • We established Openserve as a division that provides wholesale services to telecommunication operators who require three tier infrastructure.
  • Introduction of innovative product offerings.
  • Focused group programmes that guide efforts to comply with the amended ICT sector codes.
  • Engagements with Competition Commission, ICASA and Parliament have highlighted need to focus on mobile services and Telkom's attempts to reduce the costs to communicate with innovative consumer products: FreeMe and Unlimited Home.
  • Regulatory environment
  • Intense competitive landscape
  • B-BBEE certification transformation


Customers underpin our existence and drive our reputation and brand. They are the market for our products and services.

Customers guide our product or service development in terms of new trends.

  • Billing and credit refunds
  • Order installation; fault resolution times and system capabilities
  • Poor customer experience
  • We redesigned our invoice layout for the NGN in the consumer environment to align with mobile billing, effective once customer migrates. Simplified and accelerated refunds through EFT, completing 90 percent within three days.
  • Migrating to a more advanced system it will improve customer experience through better order orchestration and visibility in the end-to-end order flow.
  • We re-set the programme which includes a number of interventions to improve BCX's customer experience, including the roll-out of BCX "go-to-market" business model that allocates resources based on the value of the customer. Enhanced focus placed on market segments (corporates, public sector and medium-sized businesses) to improve customer focus and insight. Creating Centres of Excellence (CoEs) to enable front-line employees to improve customer experience with better service delivery, innovative solutions and services.
  • Customer expectation and experience


The media has an influence on public perception and brand reputation.

  • Access to significant information
  • Group media policy is followed when handling information through mediated channels.


Suppliers underpin our value chain and have a direct influence on our raw materials and other input costs. Suppliers' delivery impacts our ability to fulfil customer expectations.

  • Supplier relationship management
  • Source-to-pay process
  • The group stakeholder relationship management strategy ensures that the Supplier Relationship programme delivers value. The strategy will be aligned across divisions.
  • Source-to-pay process is finalised and linked to contract terms. Ariba, a procurement system, will enforce and support the process.


Communities are our customers and our source of employees. They can be impacted by our operations.

  • Socio-economic challenges
  • Creation of employment and business opportunities in communities
  • The group, including the Telkom Foundation, works closely with communities to address socio-economic challenges, specifically in education and social development.
  • Telkom's Enterprise Supplier Development programme, FutureMakers, improves market access, drives ICT innovation and fosters inclusive participation of majority black-owned ICT businesses in the group's supply and value chain. Refer to social and relationship capital on page 77.

Organised labour

Organised labour supports sound labour practices and assists in communicating labour-related matters. It is a strategic partner in shared value between the group and our employees. The relationship can influence the group's strategic plans through industrial action.

  • Telkom's commitment to transformation, diversity, employment equity (EE) and skills development
  • We re-established a national EE forum following numerous group changes over the past two years. We also established EE and skills development forums at a business unit level with an aim to consult all employees on aspects of EE and skills development implementation, and broad diversity within Telkom.
  • B-BBEE certification transformation
  • People skills
    and expertise


Employees possess the intellectual capital required for all core and supporting business processes. They are our strategic partner in ensuring that the group is sustainable through performance, culture and skills.

  • Telkom's commitment to EE transformation progression including skills development opportunities
  • Focused on an EE policy - implementing a strategy to transform all occupational levels. Refer to human capital on page 69.
  • Telkom's talent management framework, which we implemented two years ago, enables the business to identify key talent, providing sight of high-potential talent and talent risk areas across the group. Telkom has made a concerted effort to put the transformation agenda at the forefront of our people practices. Targeted talent acquisition has focused on attracting and acquiring talent to help address our transformational goals. Development initiatives and programmes are planned to drive the progression of our internal EE employees. Refer to human capital on page 69.
  • B-BBEE certification transformation
  • People skills
    and expertise