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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

No existing relationship

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

Relationship quality

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)
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.
Relationship quality Relationship quality Relationship quality Relationship quality
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
     
Government
													and
													regulators

Government and regulators

Relationship quality

Basis of assessment: Self-assessment
 

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

Relationship quality Relationship quality Relationship quality Relationship quality
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
     
Investor
													community

Investor community

Relationship quality

Basis of assessment: Self-assessment

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.

Relationship quality Relationship quality Relationship quality Relationship quality
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
     
Investor
													community

Employees

Relationship quality

Basis of assessment: Employee engagement survey and employee engagement score

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.

Relationship quality Relationship quality Relationship quality Relationship quality
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
     
Organised labour

Organised labour

Relationship quality

Basis of assessment: Self-assessment

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.

Relationship quality Relationship quality Relationship quality Relationship quality
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
     
Suppliers and partners

Suppliers and business partners

Relationship quality

Basis of assessment: Self-assessment and supplier surveys

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.

Relationship quality Relationship quality Relationship quality Relationship quality
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
     

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.

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