Engaging with our stakeholders
Telkom is committed to open and constructive communication with material
stakeholders.
We strive to respond to stakeholder concerns in a timely and appropriate way and to
address
these concerns transparently.
Our stakeholder engagements are guided by a formal framework and policy. Our
stakeholder
management programme focuses on identifying and engaging with key stakeholders,
understanding their challenges and expectations, and aligning these with our
strategic
and operational objectives and targets.
We engage regularly via relevant and effective channels.
Stakeholder governance
structure
The Board
is the ultimate owner of stakeholder
management matters and is responsible
for overseeing response strategies.
The Social and
Ethics Committee
assists the Board in fulfilling its
responsibilities by ensuring we manage key
relationships effectively.
The GCEO
ensures commitment to effective
stakeholder management.
The Group Exco
considers critical stakeholder matters as
part of its agenda. It reviews and discusses
the stakeholder management profile and
assigns Members to monitor specific
stakeholder groups.
Management
implements the overall stakeholder
engagement process through the approved
framework and policy.
Monitoring and reporting
We assess the effectiveness of
stakeholder engagements and relations
by linking KPIs to value creation and
relationship quality. Proper assessment
of stakeholder relationships allows
management to channel time and effort
into relationships that are relatively weak.
Our stakeholder groups
We unpack our top six stakeholder groups
based on the material impact they can
have on Telkom’s value creation process.
Relationship quality
Relationship established but significant work needed to improve it
Relationship established and value created with room for improvement
Good relationship with some room for improvement
Strong relationship exists
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Customers
|
Relationship quality
Basis of assessment: Customer satisfaction surveys (Openserve's NPS
(79), interaction net promoter score (iNPS), Voice of the Customer
(VOC), Quality of Service (QoS), Brand health tracker and Tarifica
benchmarking)
|
S1
|
Customers underpin our
existence and drive our reputation and brand. They consume
the
products and services from which we generate revenue. Their evolving
needs and
preferences guide product and service development in relation to new
trends and
market
shifts. Building strong relationships and delivering superior service
are
critical to ensur
customer loyalty, brand advocacy and sustained revenue growth |
| Refer to the business unit
performance sections in
the productive capital chapter.
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| Their
interests, needs and expectations |
How we
responded in FY2026 |
Overarching value created for customers
|
In FY2027 we will
prioritise |
- A relationship of
trust and
transparency
- Reliable and high-performing
network
infrastructure
- Affordable and
value-driven
products and
services
- Superior customer
experience
- Solutions that
support cost
management
- Timeous resolution
of complaints and
issues
- Effortless
transactions
- Secure information
- Education on how
to derive the most
value from our
offerings
|
- Continually
reviewed product
portfolios to
ensure
affordability and
market
responsiveness
- Integrated content
and influencer
marketing to
educate
consumers
- Improved query
response times on
social media
channels
- Improved
customer
experience through
digital journeys
and proactive
notifications
- Improved
customer
experience through
digital journeys
and proactive
notifications
- Maintained deep,
trusted customer
relationships
through innovative,
purpose-fit
solutions
|
- Offered compelling
product and service
value propositions
that address their
budget constraints
- Invested in network
expansion and
modernisation
- Improved
responsiveness
- Delivered
competitive
advantage for
partners through
South Africa's
leading open-access network
- Enabled customers
to improve their
lives and grow their
businesses through
connectivity
- Enabled SMMEs
and corporates to
stay connected
through affordable
voice and data
offerings
|
- Improving the
overall customer
experience
- Driving adoption
of fibre-based
services and
expanding market
reach
- Service delivery
experience
- Enhancing billing,
pre-sales and
pricing
touchpoints to
ensure market
competitiveness
- Expanding fibre-based services
and driving
market reach
- Improving
customer effort
scores
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Government
and
regulators
|
Relationship quality
Basis of assessment: Self-assessment
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S2
|
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We engage with government departments on policy
development, with
Parliament on the
adoption of new legislation and legislative amendments, and with
regulators on regulations
and licence terms and conditions. Not achieving positive outcomes in
these engagements can
significantly impact the cost of doing business. It can also affect
our return on investment, the
cost-effectiveness of our services and the value we create for
stakeholders.
The sector regulator issues operating licences,
including those
required to use radio frequency
spectrum and to provide electronic communications services and
networks. The regulator
monitors retail tariffs, sets call termination rates, imposes social
obligations, allocates numbering
resources, and prescribes fees payable by licensees. The regulator’s
findings and decisions
influence market dynamics. Non-compliance with legislation and
regulations can result in
penalties and fines, further affecting our operations
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| Their
interests, needs and expectations |
How we
responded in FY2026 |
Overarching value created for customers
|
In FY2027 we will
prioritise |
- A relationship of
trust and
transparency
- Compliance with
policies, laws,
regulations, and
licence terms and
regulations
- Quality and
affordable products
and services across
South Africa
- Effective market
competition
- Efficient use of
spectrum
- Economic
transformation, social
impact, job creation
and productivity
|
- Engaged
proactively with
policymakers,
regulators and
market
participants
- Submitted
comprehensive
inputs during
public
consultations on
draft policies,
regulations, bills,
and legislative
amendments
|
- Contributed to the
fiscus through tax
payments, licence
fees and
contributions to the
Universal Service and
Access Agency of
South Africa
- Enabled the
government’s socio‑economic development
mandate through
investment in networks
and infrastructure
- Shaped government
policies through robust
engagement with
regulatory agencies,
such as ICASA and the
competition authorities,
and participation in
industry forums
- Promoted local
procurement,
employment and
value-adding
CSI initiatives
|
- Collaborating with
the government and
regulatory bodies, as
necessary
- Participating in the
next high-demand
spectrum licensing
process
- Engaging on the
review of the
Electronic
Communications Act
- Engaging ICASA and
relevant stakeholders
on the review of the
legislative framework
relating to B-BBEE
- Engaging ICASA on
the renewal of
Telkom’s electronic
communications
services and
electronic
communications
network licence
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Investor
community
|
Relationship quality
Basis of assessment: Self-assessment
|
S3
|
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Investors enable access to equity and debt
markets. They drive demand for Telkom shares
and debt securities, impacting our market capitalisation and debt
issuance capacity.
Also refer to the leadership
reflections
chapter.
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| Their
interests, needs and expectations |
How we
responded in FY2026 |
Overarching value created for customers
|
In FY2027 we will
prioritise |
- Long-term
sustainable return
on investment
- Optimal debt levels
and sustainable
positive FCF
- A relationship
of trust and
transparency, and
access to
management
- A clearly articulated
investment case
- Improved ESG and
financial
disclosures and
tracking of
performance
against goals
|
- Engaged with investors
and analysts, including
fixed income investors, at
financial results
roadshows, conferences,
and on an ad hoc basis
- The Chairpersons of the
Board, the Remuneration
Committee and the Social
and Ethics Committee
engaged with shareholders
at the annual governance
roadshow
- Changed the medium-term
guidance, upgrading Group
revenue growth to midsingle-digit (4%-6%) and
guiding on EBITDA margin
rather than EBITDA growth
- The new medium-term
guidance introduced
EBITDA margin targets for
the business units
- Clarified the impact of
Swiftnet leases
externalising on HEPS and
FCF. Despite the leases
externalising, HEPS grew
by 21.5%
- Delivered FCF of
R3.1 billion, a 10.4%
increase
- Provided progress on our
ESG targets and
introduced the four pillars
of the new Sustainability
Strategy
|
- Improved
understanding
of Telkom's
investment case
to enable
informed
investment
decisions
- Telkom’s share
price appreciated
by 58.4% for the
year
- Declared an
ordinary dividend
of 270 cents, a
65.7% increase
- Return on invested
capital was stable
at 11.2%
- Published Telkom's
first sustainability
report
|
- Enhancing
communication
of our strategy
and business
objectives to
deepen investors'
understanding of
our business
model
- Exploring
innovative ways
to maximise
investor
engagement,
leveraging
technology for
broader reach
and participation
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Employees
|
Relationship quality
Basis of assessment: Employee engagement survey
and employee engagement score
|
S4
|
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Employees are strategic partners essential for
ensuring Telkom’s sustainability through their
performance, culture and skills. They possess the intellectual
capital required for all core and
supporting business processes, making them integral contributors to
the Group's success.
Also refer to the human
capital chapter.
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| Their
interests, needs and expectations |
How we
responded in FY2026 |
Overarching value created for customers
|
In FY2027 we will
prioritise |
- A relationship
of trust and
transparency
- Frequent
communication
and engagement
- Job security
- Fair remuneration
and recognition
and reward for
performance
- Learning and
development
- A non-discriminatory
and safe work
environment
- Career pathing
and mobility
|
- Held regular meetings
and virtual gatherings to
keep employees
informed about news and
initiatives. Utilised email,
newsletters and intranet
to share information
effectively
- Offered learning
opportunities through
part-time bursaries,
tailored development
programmes, online
learning resources,
internships and
leadership initiatives
- Hosted several GCEO
roadshows nationally
to provide updates on
business performance
and the OneTelkom
approach
- Hosted the first GCEO
Maestro awards
ceremony to recognise
and award those who
made exceptional
contributions to
OneTelkom, and those
recognised through the
reward and recognition
programmes that
commenced in FY2025
|
- Offered competitive
market-related
packages with
various benefits,
including company
cellphones, rebates
on Telkom services,
and flexible death
and disability
benefits through a
bespoke retirement
fund
- 85% of employees
are engaged and
prepared to go the
extra mile
- The Telkom
Retirement Fund
assists employees
with retirement
planning and
preparation
- The Employee
Wellness Programme
provides employees
and their families
with comprehensive
wellness assistance,
including
psychological
counselling and legal
advice
|
- Engaging with
employees on the
strategy to
ensure alignment
and
accountability
through the
performance
management
process
- An increased focus
on empowering
employees in the
financial wellness
domain
- Implementing
the outcomes
of the employee
engagement
survey
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Organised
labour
|
Relationship quality
Basis of assessment: Self-assessment
|
S5
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Telkom has a collective recognition agreement
with the Alliance of the Communication
Workers Union (CWU) and the South African Communications Union
(SACU) for employees
at job levels M/S6 and below. The Alliance serves as a strategic
partner. It fosters shared
value between Telkom and its employees, advances the Group's
strategic plans, and
ensures operational efficiencies and objectives are met.
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| Their
interests, needs and expectations |
How we
responded in FY2026 |
Overarching value created for customers
|
In FY2027 we will
prioritise |
- A relationship of
trust and
transparency
- Proactive
consultation on
business changes
that impact
employees
- A stable workforce
and business stability
- Continuous
commitment to skills
development,
especially
considering new
technologies and
employment equity
regulations
- Avoiding
retrenchments and,
where unavoidable,
minimising the
number of impacted
employees
- Considering the
impact of
retrenchments and
outsourcing
agreements on
employment and the
terms and conditions
of employment
|
- Continued
engagements
between Telkom
and the unions
- Reviewed the
collective
engagement
framework to
formally include
an interim
leadership
structure as a
partner within
the Alliance
|
- Allowed employees
to exercise their right
to freedom of
association
- Gave unions access
to the workforce and
provided support for
shop stewards
- Facilitated fee
deductions
|
- Continue facilitating
quarterly employee
relations workshops
between HR
business partners,
promoters and
employees
- Continue training
pools of internal
disciplinary inquiry
chairpersons
and initiators
- Continue proactively
engaging with the
unions, including
wage negotiations
- Company forum
meetings have been
convened and are
ongoing as part of
the dialogue between
Telkom and the
Alliance
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Suppliers
and
business
partners
|
Relationship quality
Basis of assessment: Self-assessment and supplier surveys
|
S6
|
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Our strategic partnerships with suppliers and
business partners enable us to timeously
deliver high-quality products and services. As contributors to our
value chain, suppliers
influence the cost and availability of materials and other inputs.
Suppliers and business
partners are often seen as an extension of Telkom, directly shaping
our customer experience.
They impact our ability to meet evolving customer demands and
expectations.
Also refer to the social and
relationship chapter.
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| Their
interests, needs and expectations |
How we
responded in FY2026 |
Overarching value created for customers
|
In FY2027 we will
prioritise |
- Enhanced,
effective and
open two-way
communication
- Collaborative
contract
management
- Performance
visibility and
feedback
- Adherence to
payment terms
- Simplification of
business
transactions
- Timely resolution of
queries and
disputes
- Fair, ethical and
transparent
procurement
|
- Conducted regular
reviews with
suppliers to ensure
alignment and
strengthen
partnerships
- Evaluated
partnership
performance to
identify opportunities
for improvement
- Tracked adherence
to payment terms on
a monthly basis to
ensure consistency
and compliance with
agreements
- Implemented an
assessment of ESG
aspects for suppliers
- Launched an RFP
process to appoint a
supplier assessment
provider to
strengthen
sustainability data
from suppliers
|
- Enabled them to
generate sustainable
revenue through fair
and transparent
commercial
engagements
- Gave them a platform
to market their
products and
strengthen their brands
through association
with and/or
accreditation by
Telkom
- Provided training and
support to
subcontractors where
necessary
- Our enterprise and
supplier development
(ESD) and
transformation
programmes
(FutureMakers) support
local procurement as
much as possible. We
also promote local
employment by
supporting and
developing local
contractors
|
- Supporting local
procurement,
manufacturing,
employment, and
upliftment of
SMMEs
- Enhancing
compliance with
contractual payment
terms, and providing
suppliers with
options to improve
their cash flow
- Leveraging supplier
onboarding survey
insights to improve
processes and
strengthen supplier
relationships
- Driving cost
reduction through
improved forecasting
and planning
- Advancing ESG
integration, supplier
risk management
and climate-related
reporting
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Our communities are at the centre of our social
licence to operate and host some of
our infrastructure. It is imperative that we understand our communities’ needs and
perspectives and work collaboratively with them on sustainable solutions to their
challenges. Refer to the social and
relationship capital chapter for
more information.
The media, opinion makers and
influencers drive
reputation
and brand
perception. We
provide information and context on technical matters, financial performance and
operational
developments, and thought leadership on matters affecting our industry. Refer to
information
on our brands in the intellectual capital
chapter.