Telkom's vision is to be the builder of the digital backbone that powers South Africa's digital future. This reflects our commitment to advancing South Africa's digital progress by developing fixed, mobile and digital infrastructure and services.
Our vision builds on our purpose of seamlessly connecting our customers to a better life. We strive to improve their experiences professionally and personally, whether they are pursuing education, enjoying entertainment or engaging with colleagues, family and business contacts globally.
The term "PIVOT" represents our five-pillar strategy along with its supporting Group enablers. It inspires employees across all teams, departments and business units to pursue ongoing change and discover innovative ways to serve customers.
Monetise our infrastructure assets as OneTelkom
People development and empowerment
Simple and digital processes
Financial framework aligned to a data-led strategy
Accelerate sustainable growth and create a positive impact on society and the environment
PIVOT reflects the significant transformation within our core business, addressing the transition from voice to data, copper to fibre, and fixed-line to mobile technologies.
The industry is increasingly defined by a wide range of digital services, automation, and data-driven decision-making. PIVOT represents our advancement beyond basic connectivity towards comprehensive IT service solutions and integrated digital ecosystems. Additionally, PIVOT aligns with the four SDGs most relevant to our operations. Refer to the sustainability report for an overview of our contribution to the SDGs.
We encourage business units to monetise our infrastructure assets as OneTelkom. We earn revenue from our assets by using them to deploy mobile and fixed connectivity, data services and a broad portfolio of IT services. We also make our assets available for use by third parties, such as internet service providers (ISPs) and other licensed network operators.
While our operating model is still based on federated business units, our strategic framework emphasises the synergies between them rather than their separation.
We are dedicated to the ongoing development and empowerment of our workforce. Employees remain a fundamental enabler of our success, even as digitalisation advances. We equip them with the skills they need to adapt to change and make decisions at the local level.
By making our processes simpler and more digital, we are enabling a seamless customer experience.
We identified a sustainable financial framework aligned with our data-driven strategy as an enabler for strategic allocation of capital. We are directing our capex toward expanding our mobile and fibre networks, ensuring optimal returns, prioritising the needs of our data subscribers, and increasing cash flow from operations.
We introduced a new enabler to create value for the Group and stakeholders, guided by our four sustainability pillars: Prosperity, Planet, People and Practice. Further details on our Sustainability Strategy can be found on the sustainability report.
| Why it is a priority | Measures of our progress | FY2024 | FY2025 | FY2026 | Why the measures are important | Target outcomes | |
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P
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Partnerships enable the Group strategy. We seek to simplify and maximise partnership opportunities for the Group. | Revenue from global IT hardware and software partnerships | R1 454 million |
R1 527 million |
R1 538 million |
It shows the development of new partnerships to complement our core services. | Leverage partnerships optimally to support achievement of the Group strategy. |
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I
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Addressing customers’ ICT needs comprehensively requires appropriate access solutions. These solutions must seamlessly integrate with various IT services, from traditional (hardware and software) to new and emerging (cloud and IoT) IT services and analytics. | Beyond Connectivity revenue and as a percentage of total mobile revenue | R1 665 million (7.5%) |
R1 685 million (6.9%) |
R1 699 million (8.8%) |
They indicate progress in supplementing traditional connectivity with service offerings that resolve customer pain points. | Offer end-to-end converged propositions, from connectivity to IT solutions. |
| Cybersecurity product and service revenue | R522 million |
R469 million |
R443 million |
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| PaaS solution sites | 59 | 501 | 151 | ||||
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V
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We are building new digital services on high-speed data networks. We are accelerating our capability to disrupt the local broadband market by delivering innovative and value-rich solutions. Telkom offers these to residential and commercial customers via the optimal access technology – copper, fibre, fixed wireless, mobile or satellite. | Mobile broadband subscribers in Telkom Consumer | 12.7 million |
15.2 million |
19.9 million |
Continuous growth in data traffic and associated data revenue highlights the increasing demand for data-centric services. |
Become the leading broadband provider in South Africa. |
| Fibre broadband subscribers in Telkom Consumer | 213 400 | 220 669 | 219 928 | ||||
| Fixed-broadband data traffic (petabytes) | 2 307 | 2 915 | 3 683 | ||||
| Enterprise next-generation data access revenue in BCX | R1 561 million |
R1 770 million |
R1 699 million |
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|
O
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In an increasingly competitive world, our success depends on continually improving the efficiency and effectiveness of our operations. | Fibre connectivity rate (%) | 48.5% | 50.4% | 53.1% | They show how we improve customer experience and capital efficiency and reduce the cost of maintaining a large property footprint while generating cash for reinvestment. | Develop operational superiority, which provides a competitive advantage. |
| NPS in Openserve | 70 | 72 | 79 | ||||
| Use of AIOps revenue growth | 9% | 6% | -11% | ||||
| Fibre average time to install (days) | 2.43 | 2.36 | 2.79 | ||||
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T
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We aspire to operate with the most scalable and efficient network. To achieve this, Telkom invests in an optimal mix of technologies. | Fibre access connections (number) | 590 527 | 694 630 | 817 540 | They demonstrate the continual investments made to deploy the latest mobile, fixed and digital technologies. | Modernise and build a state-of-the-art, seamless, data-led network that is not easily replicable to sustain our integrated competitive advantage. |
| Mobile base stations (number) | 7 909 | 8 420 | 8 420 |
Our focus across the five PIVOT pillars keeps us on track to seamlessly connect our customers to a better life. Each business unit makes unique and strategic contributions that demonstrate innovation and drive outcomes that create value for our stakeholders.
This section should be read in conjunction with the business unit performance sections starting on Telkom Consumer.
Partnerships
By deploying the relevant digital platforms, we enable best-of-breed partners to deliver relevant services quickly and efficiently to our customers.
Openserve facilitated the formalisation of a memorandum of understanding between the Southern Africa Telecommunications Association (SATA) and the World Broadband Association (WBBA) to advance broadband development across the Southern African Development Community (SADC). This partnership advances the OneTelkom approach by leveraging Telkom’s wholesale connectivity leadership to build higher-impact ecosystem relationships and accelerate digital inclusion outcomes.
Openserve partnered with Huawei to introduce South Africa’s first fibre-to-theroom (FTTR) solution. The partnership extends the performance and reliability of fibre connectivity to deliver full-coverage, high-speed connectivity throughout homes and small businesses. The FTTR offering uses a fully optical in-premises network to address common Wi-Fi challenges such as coverage gaps, weak signal and instability. It is delivered through Openserve’s ISP ecosystem, enabling partners to deploy differentiated, premium connectivity experiences for customers across multiple rooms or floors.
Integrated solutions
We aim to provide value-added services on top of connectivity services.
Telkom Consumer has evolved its integrated solutions strategy from providing standalone connectivity to delivering converged, digital-first propositions for households and small and medium enterprises. Telkom Consumer now combines mobile and fibre connectivity with smart Wi-Fi, digital self-service platforms and enhanced customer experience capabilities. This enables customers to manage, optimise and personalise their connectivity through a single digital interface.
BCX continued to capitalise on the integration of connectivity with cloud, security and managed services to deliver outcome-based solutions for enterprise and public sector customers. BCX embeds software-defined networking, cybersecurity, unified communications, cloud enablement and ongoing managed support on top of resilient network infrastructure. This addresses customer needs for operational resilience, scalability and digital transformation.
Value-rich broadband
Broadband leadership can no longer be defined purely by market share or price, especially given competitive pressure from fibre ISPs, mobile operators and global over-the-top (OTT) players.
Value-rich broadband reframes success around quality of revenue, customer experience and ecosystem value, rather than connectivity volumes alone.
Openserve expanded its end-to-end fibre broadband services. These include Web Connect, Office Connect Premium and Prepaid Fibre, which bundle fibre access with uncapped internet, defined service levels and flexible commercial models. These offerings provide ISPs and business customers with broadband that includes performance assurance, simplified provisioning and digital support tools, adding value beyond raw connectivity.
BCX integrated enterprise connectivity with unified communication and collaboration services, including voice, video and digital collaboration platforms. These services were designed to run over BCX’s managed networks to ensure quality of service, resilience and security. They provide significantly more value than unmanaged internet access for distributed workforces and complex organisations.
Operational efficiency
We aim to utilise resources efficiently, digitise processes and procedures, and leverage platforms and applications to deliver IT services.
We aim to reduce costs through economies of scale and simplicity within our operating model.
Telkom Consumer accelerated its digital‑first operating model and optimised its commercial execution. The business optimised selling channels and improved network and customer experience through digital transformation initiatives, supporting improved profitability and more efficient customer acquisition and servicing. Cost discipline contributed to sustained margin performance, underpinned by efficiency initiatives that kept cost increases below inflation.
Openserve advanced operational efficiency through ongoing network simplification and energy transformation, reinforcing its role as a scalable, cost-effective wholesale fibre infrastructure platform. These initiatives formed part of the Group’s broader operational excellence agenda and were specifically highlighted as drivers of sustained performance. They supported a resilient margin profile while Openserve continued to grow fibre-related revenue and network utilisation.
These examples highlight the improvements in our operational efficiency metrics.
Technology innovation
We deliver value for our customers by deploying technology optimally to improve the network experience and reduce service costs. This includes:
Telkom Consumer focused on modernising customer engagement through digital channels, data analytics and self-service platforms. These initiatives reduced dependence on legacy processes while improving speed, scalability and customer experience. Continued investment in network capabilities and data-driven insights enabled the mobile and fibre businesses to support sustained growth in data usage and subscribers. This reinforced Telkom Consumer’s position as a technologyenabled provider of modern digital connectivity solutions.
BCX accelerated its transition toward nextgeneration digital, cloud and cybersecurity services supported by digitally enabled delivery and operating models. Strategic investments in modern platforms and tools enabled BCX to improve service scalability, productivity and customer outcomes, while reducing reliance on legacy IT delivery. This technology-led transformation supported improved financial performance and positioned BCX as a digitally enabled systems integrator capable of supporting complex enterprise and public sector digital transformation initiatives.
These are examples of our ongoing deployment of the latest mobile, fixed and digital technologies.
