Delivering sustainable value requires Telkom to make deliberate trade-offs between competing priorities. These decisions are carefully considered by management and the Board to ensure alignment with our strategic pillars, to strengthen our business model and protect stakeholder interests over time.
Telkom is committed to achieving net-zero greenhouse gas (GHG) emissions across Scope 1, 2 and 3 by 2040, with an interim goal of carbon neutrality by 2035.
We continue to invest in renewable energy solutions, energy efficiency initiatives and circular economy practices. These investments support long-term cost efficiencies, improved network resilience and reduced climate risk. However, they compete with capital required to expand our mobile and fibre networks and enhance customer-facing technologies.
Through disciplined capital allocation, we seek to advance our sustainability ambitions while supporting growth and operational resilience.
Impact on strategy and future business modelOur transition towards lower-carbon operations is improving energy efficiency, reducing the cost to serve, decreasing reliance on diesel-based energy solutions, and strengthening operational resilience across our network.
Over time, this positions Telkom to deliver more sustainable digital services while aligning with regulatory and stakeholder expectations, thereby supporting long-term value creation.
Telkom optimises its portfolio by prioritising high-growth opportunities while improving the performance of underperforming operations.
The Group is focused on scaling its mobile and fibre businesses, which drive data-led revenue growth. At the same time, certain legacy and ICT-related operations require ongoing cost optimisation and strategic interventions to improve returns.
This creates a trade-off between supporting performance in businesses facing structural or market-related challenges and accelerating investment in growth platforms.
Impact on strategy and future business modelBy focusing on core infrastructure and growth segments, Telkom is strengthening its position as a leading digital infrastructure provider.
This enables more efficient capital allocation and improved returns, while supporting the scaling of mobile and fibre networks that underpin long-term growth.
Telkom prioritises growth in mobile and fibre while maintaining a strong focus on cost discipline and operational efficiency.
The Group is investing in network expansion, customer acquisition and digital capabilities. At the same time, management remains focused on cost optimisation, productivity improvements and disciplined allocation to enhance profitability and cash generation.
This creates a trade-off between accelerating growth and maintaining a lean and efficient cost base.
Impact on strategy and future business modelBalancing growth with cost efficiency strengthens our financial resilience and supports improved profitability.
Over time, a more efficient cost structure enhances our operating leverage, enabling the Group to scale sustainably as demand for data and connectivity grows.
Telkom continues to transition from legacy fixed-voice services to next-generation platforms such as fibre and mobile broadband.
This involves decommissioning of copper infrastructure and legacy technologies, which results in short-term revenue pressure and upfront costs. At the same time, we continue to invest in fibre rollout, mobile expansion and network modernisation.
This creates a trade-off between managing the decline of legacy services and accelerating investment in scalable, data-led platforms that will drive long-term value creation.
Impact on strategy and future business modelThis transition is repositioning Telkom as a modern, digitally enabled connectivity provider with a strong focus on data-led services.
While the transition creates short-term financial pressure, it reduces long-term operating costs, enhances service quality and supports sustainable growth in broadband and mobile markets.
Telkom continues to invest in digital platforms, automation, AI and data capabilities to enhance customer experience and improve operational efficiency.
These investments require significant capital and organisational change in the short term, but are expected to improve efficiency, enhance customer engagement and strengthen competitiveness over the long term.
This creates a trade-off between current investment requirements and long-term benefits of a more integrated, data-driven and customer-centric operating model.
Impact on strategy and future business modelThese investments support the Group's OneTelkom approach by enabling greater integration across business units, improving customer interactions and creating a more scalable digital operating model.
Over time, enhanced digital capabilities are expected to improve operational efficiency, strengthen customer retention and support sustainable value creation.
