Markets around the world, including South Africa, showed clear signs of being reshaped by the disruptive technology of the fourth industrial revolution.
Telkom's technology and information strategy focuses on progressing our digitalisation efforts, initiating holistic, Group-wide digital business transformation, and exploring the opportunities presented by AI.
Telkom has invested steadily in integrating technology and data in the front and back offices of our business. These digitalisation initiatives enable us to:
Digital self-service
Openserve introduced several technology‑enabled self-service capabilities, such as:
Technology modernisation
Telkom Consumer continued its multi-year programme to upgrade critical elements of its core platform, including the e-business suite, enterprise data warehouse and BSS.
Development also started on the Telkom Super App and Digital Marketplace (YEP) with features designed to increase digital sales, reduce call centre volumes, and accelerate time-to-market for new products.
Shared service enhancements
Telkom's shared services model and enterprise architecture were enhanced to improve the speed and efficiency of internal processes, reduce redundancies and ensure seamless system interoperability.
In addition, we reshaped our third-party application maintenance contracts for critical shared systems that yield a significant saving per year. This is part of our ongoing technology cost-optimisation initiative.
BSS and operational support systems (OSS) transformation
Openserve's OSS transformation programme continues to modernise its operational environment to improve efficiency, promote simplicity and standardisation, and automate processes.
In September 2023, the first phase of the OSS project delivered the fibre national private leased circuit products in our carrier links' next-generation network portfolio. Following rigorous planning, the second phase commenced in December 2024. It covers a broader range of products, services and technologies.
Planning for the third phase is underway, with a focus on gigabit passive optical network‑based services fulfilment. It will also incorporate a unified inventory system, enabling simpler fulfilment processes.
In parallel, the Openserve BSS transformation project yielded significant benefits:
Data-driven insights
The use of actionable data insights, machine learning and predictive analytics was central to improving operational efficiency at Openserve. A cloud data platform provided insights for focused marketing campaigns that identified target areas. This contributed to an improved fixed-line active service and fixed-line connected home rate.
We established a model for proactive assurance management that optimised technician dispatch and enhanced service quality through predictive maintenance.
Cloud transformation
BCX completed its transition from traditional on-premises infrastructure to a modern, cloud-based architecture, integrating workforce analytics and Employee Central Payroll solutions. This transformation optimised internal operations and workforce management and enabled delivery of seamless, responsive and data-driven solutions to customers.
Order-to-cash transformation
Openserve continued to execute its order‑to‑cash transformation programme. This aims to streamline revenue processes and enhance financial performance by reducing cycle times and optimising the customer journey from order placement to invoicing.
The initiative enabled Openserve to optimise billing cycles, financial account management, and order-to-cash processes through an integrated wholesale BSS application. It improved operational efficiency and enhanced customer experiences through automation and seamless integration with digital channels and client systems via APIs.
Our focus on technology governance and enterprise resilience ensured we had no major technology-related disruptions. This contributed to Telkom's reputation as a highly resilient and reliable ICT service provider.
Technology oversight and leadership
The Board strengthened its oversight of technology by establishing a focused Technology Committee. Telkom appointed a Group Chief Digital Officer, Sello Mmakau, in April 2024 to lead and accelerate our technology playbook transformation.
Information security risk and governance
We continued to implement our proven risk‑based approach to information security, staying agile in the evolving technology landscape amid potential emerging risks. We strengthened our information security governance and management system by reviewing and aligning our information security strategy with regulatory changes and leading industry practices and benchmarks.
Improvements in FY2025 included:
We continued to provide customers with innovative, differentiated experiences through data-driven insights.
Data-driven customer experience
Telkom developed and launched Bafo, an AI-powered platform designed to improve the efficiency of our contact centres and the end-user experience. Bafo was built on the foundation of our earlier investment in speech analytics and large language models that can operate effectively within the African context.
We developed an AI-powered Voice of the Customer platform that provides comprehensive insights into our customer experience. The platform leverages behavioural economics and consumer analysis, together with our custom AI models, to generate insights that will shape future products and consumer engagement strategies.
We also launched a new Policy Chatbot, an AI-powered, internal HR solution that improves the employee experience when interacting with Telkom's policies and procedures.
Data-driven enterprise customer experience
The Microsoft Fabric transformation at BCX has translated into faster, more accurate and actionable insights into the experience of enterprise customers. This enables BCX to deliver personalised services, improve response times, and develop solutions tailored to customers' evolving needs.
Holistic digital business transformation is a strategic imperative to enable our growth and long-term sustainability. It will enable us to use our digitalised front- and back-office capabilities to reimagine our business and operating models. This will create new customer and business value through innovative digital products, services, platforms and ecosystems.
Telkom initiated a Group-wide technology diagnostic and strategic review during FY2025. The aim was to reimagine Telkom's potential and value to customers and other stakeholders when seen through “digital‑eyes". The review considered how best to respond to current business challenges and technology needs. It also sought to anticipate what the future business will need to be sustainable in a digitally transformed world.
A Group digital business strategy was developed through this process. It includes a digital business vision and blueprint, and designs for a fit-for-purpose technology operating model and enabling enterprise architecture that align with Telkom's longterm objectives.
The Group digital business strategy aligns with and accelerates Telkom's PIVOT Strategy, as it:
Provides enabling technology and data capabilities to realise the full potential of our partner ecosystem
Enables Telkom to reimagine customer value propositions to ensure they are relevant in the digital era
Uses technology-centric thinking to optimise our operating model and lower cost to serve .The strategy also considers Telkom's core telecommunication platform, our
affordable broadband solutions and
state-of-the-art network assets that provide us with:
We will start implementing the Group digital business strategy in FY2026. This will be our key priority going forward.
AI has immense potential to help Telkom optimise our value chain and unlock new growth opportunities. However, it comes with new societal and business risks that need to be carefully considered and managed. These risks are counter-balanced by the growth of network traffic and changing customer requirements that make traditional systems inadequate for an AI future.
We began to define the nature of Telkom's future business relationship with AI through the Group digital business strategy.
We have three strategic AI considerations - for Telkom to be a consumer, a contributor and a producer.
We have begun and will continue to explore opportunities to integrate AI-powered applications in our front- and back-office processes. The aim is to amplify and transform our existing products and processes, improve efficiency and deliver differentiated customer and colleague experiences.
We are developing an AI policy to establish the framework for responsible use, good governance and internal control. This will create an enabling environment for AI to proliferate safely and sustainably across the Group.
In parallel, the business units have adopted an exploratory approach. They are experimenting with and learning from focused AI use cases before scaling their use.
Our research in FY2025 found opportunities for Telkom to develop, operate and market a new breed of cloud-based, data-intense, AI‑powered digital solutions for our enterprise customers. The solutions can utilise available third-party AI platforms that can be linked to and leverage the scale of our core data and distribution assets.
We are exploring options for enabling algorithmic access to Telkom's vast data assets while preserving privacy. This would further cement our position as a key South African AI contributor.
We see an opportunity for Telkom to operate as a downstream AI infrastructure player. We believe Telkom has a role to play in enabling "AI last mile". Through our advanced connectivity infrastructure and modern local data centres, we believe we can support the distributed processing of AI-related workloads by global players operating in our market.
We will explore this opportunity further in FY2026, taking care to balance prudence and innovation.
Telkom invested R46 million in innovation, industry research and development, and academic research to enhance customer experience and develop cutting-edge innovations by leveraging AI.
Through the Telkom Innovation office, we are seeing green shoots from our investments. These include the Bafo and Voice of the Customer platforms discussed under intellectual capital.
We conducted an in-depth diagnostic study on the operational efficiency and customer experience of our customer acquisition technologies and processes. This extensive research supports technology, automation and process redesigns to enable evidence‑based solutions to streamline sales, accelerate onboarding, and reduce the cost of customer acquisition.
Telkom’s investment in academic research at South African universities continues to drive cutting-edge ICT research that is shaping the future of industry and solving pertinent societal challenges.
Our inaugural Telkom/National Research Foundation (NRF) FutureTech flagship grants covered:
Our Centres of Excellence (CoEs) are researching and developing high-impact solutions, including:
Refer to the chapter on social and relationship capital for details on these programmes.
The Innovation Challenge reflects Telkom's commitment to investing in employees and cultivating a culture of innovation.
There was a significant increase in employee participation (100 ideas submitted versus 57 in FY2024) in the second season of the Innovation Challenge.
Season one winners continue to progress, with several ideas, including Bafo, being implemented.
Telkom leverages several tools, services and policies to ensure the purposeful impact of our brand and reputation in the market. These include:
Openserve is at the heart of connectivity and has successfully built and run high-speed broadband networks that link banking systems, hospitals, schools and every part of society.
Telkom Consumer focuses on consumer and SMME solutions such as fixed and mobile broadband services, voice technology and related value-added services.
BCX is Africa's premier end-to-end digital solutions partner, enabling enterprises to future-proof their business.
Gyro provides two business services - property management services and property development.
Telkom and BCX were both certified as a Top Employer in South Africa.
Telkom was ranked as the leader in high‑scoring value plans by Tarifica, an independent global pricing and research firm.
Telkom was named Best Mobile Provider in South Africa by the 2024 Ask Afrika Orange Index®.
Telkom and Levergy won a Gold Award for effectiveness at the WARC Awards.
BCX won the Emerging Market SASE Partner of the Year Award.
Analytico's Brand Health survey recognised Openserve for the best service delivery.
Openserve's efforts in sustainability and carbon emissions reduction were recognised by IDATE Digiworld. This work done through our Smart Central Office Initiative was widely praised as setting an example for the global industry.
Telkom ranked "Excellent" for the eighth consecutive year at the EY Integrated Reporting Awards in September 2024, recognising progressively higher adherence to the spirit of integrated reporting.
