Telkom (South Africa)
Openserve (100%) | |
Website | www |
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Telkom SA SOC Limited is a South African wireline and wireless
History of telecommunications in South Africa
The first use of
In 1994, South Africa launched its mobile operations, underwritten by Telkom in partnership with Vodafone.[3] This subsidiary grew to be Vodacom, which Telkom sold in late 2008 in preference for its own 3G network (established as 8ta, but now Telkom Mobile). Vodacom has a subscriber base of more than 45M, with an average revenue per user of more than R60 across both rural and urban subscribers. Vodacom, together with the other operators, have come under criticism in late 2009 by government and the public for high interconnect charges.[4]
In 2005, the Department of Communications redefined the Electronics Communications Act, which consolidated and redefined the landscape of telecommunications licensing in South Africa (both mobile and fixed).[5] The Independent Communications Authority (ICASA) currently licenses more than 400 independent operators with the Electronic Communications Network License (with the ability to self-provision) as well as issuing Electronic Communications Service Licenses for service deployment over infrastructure in the retail domain.
Nowadays, Telkom faces competition from the second Fixed Network Operator Licensee, Neotel, as well as the three mobile operators, Vodacom, MTN, and Cell-C.
Telkom group structure
Telkom SA is structured under Group CEO. The retail division, including Telkom Business, Telkom Mobile, Consumer Marketing, Cloud, IT Operations, and its Wholesale and Networks division (Openserve).[citation needed]
Cybernest focuses on Telkom's newly deployed DCO infrastructure in Cape Town, Pretoria, and Johannesburg, as well as services thereupon, including data hosting, LAN and application management, and managing IT infrastructure for corporate and large business customers.
Openserve is a licensed infrastructure service provider, installing FTTH infrastructure throughout South Africa and providing products and services to internet service providers.[6][7] In 2021, Openserve joined the Internet Service Providers' Association of South Africa.[8]
Telkom acquired Business Connexion in August 2015 for approximately ZAR 2.6 billion with the strategic intent of obtaining a significant presence in the Information Technology (IT) market in South Africa.[9] This was the second attempt at the acquisition by Telkom and was subject to a number of prescribed conditions set out by the competition authorities i.e. one of which was to ensure minimal impact on staff retrenchments. The integration of the two organisations enabled a new and compelling value proposition to be offered to private and public business customers in the domestic market.
Jeffrey Hedberg was appointed acting group chief executive officer on 7 July 2010 following Reuben September's resignation.[10] Jeffrey was the CEO of Cell C from 2006 to 2009. However, on 13 January 2011, TechCentral reported that Hedberg would quit Telkom by the end of March 2011,[11] citing that he felt that he would not be given the mandate he needed to fix Telkom commercially and operationally
In 2013, allegations of corruption in terms of poor procurement practice, nepotism and mismanagement were unveiled.[12]
Telkom market position and ownership
Telkom was managed by US-based
The company is currently the market leader in the broadband space, with more than 500,000 customers on 2-40 Mbit/s DSL; it dominates the managed services market and has more than 250 corporate customers on its order book. Telkom SA operates 4.5M fixed access lines, bases on its 2008 annual report.[13]
Products and services
Telkom ADSL
Telkom provides ADSL retail services via their ISP Telkom Internet to consumer and business customers, and through Telkom Wholesale to other licensed operators. Most ISPs in South Africa, such as Afrihost, utilise Telkom's copper infrastructure for reselling ADSL services.
Telkom provides ADSL with POTS. According to Telkom's figures, 92% of exchanges have been upgraded to support ADSL.[14] Telkom is currently the largest provider of fixed-line broadband in the country, with 412 190 subscribers according to the 2008 annual report.
Telkom ADSL is billed as an add-on service to a POTS voice line. A PPPoE account, which can be provided by most
Originally, three connection rate ranges are offered (associated with different connection fees) which are "Fast" (1024/384 kbit/s), "Faster" (up to 2048/512 kbit/s), "Fastest" up to 10240/1002 kbit/s (
for downstream/upstream respectively existed. The actual speed obtained can vary depending on line conditions. These connection rate ranges have since changed, with the minimum speed currently being 2048/512 kbit/s and mid-range 5120/512 kbit/s.Telkom have released a 10 Mbit ADSL 2+ service for a limited amount of "Fastest" users on 15 August 2010.[16]
From 18 October 2011, Telkom Internet launched business offerings,[17] and has subsequently increased value with speed upgrades and improved prioritisation for business users, as well as converting products to include soft-capping (unlimited browsing).[18]
Telkom Internet offers business and residential SoftCap packages (as of 1 February 2012).[19]
As of 24 August 2012, "Faster" (1024 kbit/s) users started reporting speed upgrades to 2 Mbit/s (2048 kbit/s) on their ADSL Lines.[20] As of 2 September 2012, Telkom have begun the process of trialing 40 Mbit/s VDSL and FTTx.[21]
Telkom 3G
Telkom had offered 3G products available since 2008.
Telkom Music
Telkom partnered with Tencent Africa to launch the Telkom Music, a music streaming service that is made available via the Telkom Music Powered By JOOX app in South Africa on 22 July 2021.[24][25][26][27][28] The Telkom Music Powered by JOOX app was reviewed by Arthur Goldstuck, founder of World Wide Worx.[29]
Local subsidiaries
Telkom Group Limited includes South African subsidiaries, BCX, Gyro and
The FastNet subsidiary was incorporated into BCX in 2018 with all enterprise wireless solutions, including microwave, satellite, 4G/5G and Wi-Fi solutions.
Competition
Recent legislation passed by the South African government have lowered many restrictions on companies wishing to provide
The three mobile telephone networks in South Africa, listed in terms of numbers of subscribers, are
Another promising technology is
Pan African operations
Telkom operates in 38 countries in Africa, from regional hubs in Nigeria and Kenya via an integrated service provider strategy . It is expanding its service portfolio across managed voice, managed data, IT services & applications, and diversifying into new revenue growth opportunities in adjacent markets.
Recent acquisitions of Kenyan ISP Africa Online, and Nigerian mobile operator Multi-Links gives Telkom strategic hubs to expand data and voice services into Africa. Africa Online (AFOL) is a Pan African Internet Service Provider operating in eight countries with the 9th country through a joint-venture with Verizon South Africa. Multi-Links is a private telecommunications operator (as of 2009 a wholly owned Telkom subsidiary) with a Unified Access License allowing fixed, mobile, data, long-distance and international telecommunications services focused primarily on corporate clients in Nigeria.
Via Africa Online, Telkom intends leveraging its international capacity to deploy satellite based Internet access. Through Multi-Links, Telkom is introducing converged fixed and mobile services to the Nigerian market.
Criticisms
Monopoly and state ownership
High cost of Internet access is a major point of consumer frustration in South Africa. Telkom's monopoly, backed by government investment, over fixed line provision and international access is often pointed out as the primary reason for the high costs of telecommunications.[30][31]
The continuing monopoly of Telkom in South Africa's communications industry, and government's large stake in the company, have been perceived by the public, consumers, and the private sector[
Telkom has also attracted attention for improperly conducting itself in a contract dispute with
On 19 January 2007, a full-page advertisement was taken out in The
ADSL capping
Perhaps one of the biggest criticisms of Telkom was its introduction of a monthly traffic limit or "cap". According to Telkom, this was a measure instituted in order for the South African network not to become "congested" with an overflow of information. However, the general feeling in the South African ADSL community is that monthly traffic limits were strategically put in place by Telkom in order to obtain the maximum amount of money from ADSL users. This is mainly because Telkom offers extra bandwidth to users for a price. If the limit is exceeded during the course of the month, the ADSL connection is capped, denying international access to the web, while allowing access to local websites, until the end of the month. The user can purchase extra GBs after he/she is capped however. The typical monthly traffic limits can be used up in less than a day, even on low-speed lines.
Shaping
Another major criticism of Telkom was its institution of port prioritization or "shaping". This also was a measure introduced by Telkom in order for networks throughout South Africa not to become congested with too much information. However, port prioritization was an idea conceived mainly to benefit businesses in which employees all shared the same internet connection. Employees who used "bandwidth hogging" applications such as peer-to-peer (P2P) applications and network-intense online games often slowed down the network dramatically, preventing users who wished to browse web pages or check their mail to do so in a short space of time. Port prioritization solves this problem as it prioritizes certain ports for certain applications. It works according to a protocol which includes all ports and applications generally used in conjunction with them. These ports are sorted into a list of sorts. At the top of the list appear web browsing and email. These ports and the applications which use them receive the most bandwidth from the network. At the very bottom of the list are peer to peer applications, online games and virtual private networking (VPN). These receive very little if not no bandwidth from the network. Being unable to establish international VPN connections on the standard package has a detrimental effect on international freelancers who must pay for the much more expensive 'unshaped' service. Although it is the ideal solution for large companies, there is no choice in the shaping matter. Personal connections to the internet also get shaped. This has caused an uproar in the South African P2P and online gaming community as one has to pay over exorbitant prices (roughly two times more) to get their connections "unshaped."[33]
Fine
In June 2013, Telkom accepted a R200 million fine to settle complaints that it used its dominant market position to block competition from other network providers.[34]
See also
- Hellkom
- MyBroadband
- Neotel
- Protea (telephone) – former South African telephone jack and plug standard
- SAIX(The South African Internet Exchange)
- South African Telephone Numbering Plan
- South African Communication Landmarks
- Leapeetswe Rapula Radiala Molotsane, CEO from 2005-2008
References
- ^ a b c d e f "Telkom Integrated Report for the year ended 31 March 2020" (PDF). Sharedata. 31 March 2020. Retrieved 11 February 2021.
- ^ "How South Africa went from its first telegraph service in 1859 to 100Mbps fibre in 2015". My Broadband. 12 August 2015. Retrieved 14 September 2020.
- ^ "The first ever cellphones sold in South Africa". My Broadband. 6 April 2014. Retrieved 14 September 2020.
- ^ "Are MTN and Vodacom profiteering at our expense?". Archived from the original on 20 May 2009. Retrieved 3 November 2009.
- ^ "Electronic Communications Act [No. 36 of 2005]" (PDF). Government of South Africa . Retrieved 14 September 2020.
- ^ "About Openserve | Openserve". connect.openserve.co.za. Retrieved 12 August 2021.
- ^ "Openserve Fibre - Afrihost". www.afrihost.com. Retrieved 12 August 2021.
- ^ Staff Writer. "Openserve finally joins ISPA after 25 years". Retrieved 12 August 2021.
- ^ Thabiso Mochiko (5 August 2015). "Competition Tribunal approves Telkom's Business Connexion deal". Biz Community. Retrieved 15 September 2020.
- ^ "Telkom CEO's resignation a 'calamity'". IOL. 18 January 2011. Retrieved 15 September 2020.
- ^ "Hedberg to quit Telkom". TechCentral. 13 January 2011. Retrieved 20 June 2013.
- ^ "Dossiers plunge Telkom into crisis". TechCentral. 9 December 2010. Retrieved 20 June 2013.
- ^ "Five year operational reviewaccessdate=20 December 2008".[dead link]
- ^ "Telkom annual report 2008 - Group overview 5/11". Telkom.investoreports.com. Archived from the original on 16 July 2012. Retrieved 20 June 2013.
- ^ [1] Archived 14 August 2010 at the Wayback Machine
- ^ "Telkom Launches 10Mbps Lines". Gaming.do.co.za. Retrieved 20 June 2013.
- ^ "Telkom Business Launches Uncapped Offering". Gaming.do.co.za. Retrieved 20 June 2013.
- ^ "Telkom uncaps its capped ADSL accounts". mybroadband.co.za. Retrieved 20 June 2013.
- ^ "do Internet Bundles comparison - Internet Bundles - Offerings - Telkom do - Internet Service Provider (ISP) in South Africa". Do.co.za. Archived from the original on 3 July 2013. Retrieved 20 June 2013.
- ^ "Free uncapped ADSL upgrades from Telkom". Mybroadband.co.za. 24 August 2012. Retrieved 20 June 2013.
- ^ "40Mbps VDSL and FTTx pilot announced". Mybroadband.co.za. 2 September 2012. Retrieved 20 June 2013.
- ^ "Telkom SA Limited". Archived from the original on 14 June 2011. Retrieved 18 August 2010.
- ^ "8ta". 8ta. Retrieved 20 June 2013.
- ^ "Telkom and JOOX launch new music streaming app Telkom Music". News24. Retrieved 5 August 2021.
- ^ "Telkom partners with Tencent to launch new streaming music service". Tech Central. 21 July 2021. Retrieved 5 August 2021.
- ^ "Telkom, Tencent unveil JOOX-backed music app". ItWeb. 22 July 2021. Retrieved 8 August 2021.
- ^ "Telkom launches music streaming app powered by Joox". Bizcommunity. Retrieved 8 August 2021.
- ^ "TELKOM ROLLS OUT NEW MUSIC STREAMING APP 'TELKOM MUSIC' IN SOUTH AFRICA". NexTV News. Retrieved 9 August 2021.
- ^ "Gadget of the Week: Music app that saves your data". gadget.co.za. 28 July 2021. Retrieved 8 August 2021.
- ^ Duncan, Jane (11 April 2012). "The ANC's ICT Techno-fix". The South African Civil Society Information Service. Retrieved 19 April 2012.
- ^ Whitfield, Bruce (12 May 2011). "SA's biggest blunders". News24. Retrieved 19 April 2012.
- ^ "Rob Rose's Monday Comment: In Harms' way: why judges' Telkom ruling sends shivers down the spine". Archived from the original on 29 September 2007. Retrieved 28 November 2006.
- ^ "INFRASTRUCTURE OF SOUTHAFRICA". Retrieved 24 April 2022.
- ^ David Dolan (14 June 2013). "S.Africa's Telkom agrees to R200 mln internet fine". Reuters.