For the three months ending 30 June, the South African telecoms provider reported earnings before interest, tax, depreciation and amortisation (EBITDA) of R2.8 billion ($155.6 million), with group revenue edging up 1.1% to R10.82 billion. 

The growth was underpinned by a 7.8% rise in mobile service revenue and an 11.3% increase in fibre data revenue from its Openserve unit.

Mobile data subscribers rose 27.5% year-on-year to 17.2 million, while the number of homes connected to fibre jumped 17.5%. Telkom has now passed 1.4 million homes with fibre, connecting 723,337 of them, achieving a 51.1% connectivity rate, which it describes as a major milestone in South Africa’s broadband rollout.

The company’s shift away from copper-based infrastructure has been highly key to its recent momentum. NGN offerings such as fibre and LTE now make up 94% of Openserve’s wholesale channels, with NGN revenue rising 7% year-on-year. 

The migration has cut maintenance costs, boosted speeds, and strengthened Telkom’s position against major rivals MTN and Vodacom.

Data remains at the heart of the company’s strategy, accounting for 60% of total group revenue. Fibre-related services contribute 86% of Openserve’s operating income. 

Despite this, Telkom’s IT arm, BCX, faced headwinds, with revenue falling 8.3% and EBITDA dropping 25.3%. In response, the company has refocused BCX on higher-margin, recurring IT and fibre-led services and deployed a turnaround team to drive recovery.

On the financial side, Telkom recently settled R4.75 billion in debt following the disposal of its Swiftnet subsidiary. It also returned R500 million to shareholders as a special dividend. 

The company says it is aiming for mid-single-digit growth in the medium term, supported by sustained mobile and fibre momentum.

While robots are generally treated as tools or machines created and controlled by humans for specific tasks, our dependance on them is expected to grow.

Already, humanoids are beginning to make their way from the factory floor to our homes and workplaces – demonstrating their ability to curb the shortage of labour, ease demand for elderly care, and do jobs that are too dangerous for people.

Research shows that if the challenges around technology, affordability and wide public acceptance are overcome, the market for humanoids could reach $154 billion by 2035.

However as robots become more human-like, concerns arise about autonomy, decision-making, and potential harm. Thus, understanding the risks associated with granting or withholding ethical or moral rights is crucial.

“With their presence becoming increasingly integrated into our lives, ethical and philosophical questions surrounding whether legal or moral rights should ever be granted to humanoid robots have become pivotal,” says Malebu Makgalemela Mogohloane, executive: Enterprise Risk Management at Telkom.

“While it might seem trivial, we must think about the implications of creating entities that mirror us in form and, on increasingly many levels, function.”

For instance, Mogohloane points out, humanoids with high intellect and emotions might require regulations that ensure that their development, usage, and care adhere to ethical standards.

Without clear and defined rights, humanoids could be subjected to various forms of exploitation, including long working hours, low wages, and unsafe working conditions. They may also encounter prejudice because of their looks or ability, or because they are considered less than human.

If legal protection is not put in place, those who develop or possess humanoids may be held liable for any damage caused to them – or by them.

“At the intersection of innovation and morality, conversations about the role of humanoid robots in society are not just about technology but a reflection of our values, morals, and the fabric of our humanity,” says Mogohloane.

Some may argue that, despite robot behaviour being programmed to resemble that of people, robots are not living beings and should not receive the same treatment as humans or animals.

However, we should consider how close people and robots can be to each other. In some parts of the world, robots are providing companionship to the elderly who would otherwise be isolated. Robots are learning to develop a sense of humor. One has even been granted citizenship.

“As such, if robots reach a level of sophistication where they can experience some form of consciousness, denying them rights could be morally questionable,” says Mogohloane.

“But these rights might come with the expectation of responsibility and accountability. If robots are given certain capabilities, they may need to be held accountable for their actions, like humans.”

Mogohloane insists that society needs legal frameworks to address the status of humanoids, to determine whether they are classified as property, machines, or entities deserving of rights. We need to establish whether legal protections are necessary to ensure safety from exploitation, abuse, or discrimination.

Beyond that, we must prioritise investment in reskilling and retraining programmes for people to cultivate a culture of acceptance towards humanoids. Ultimately, the decision on whether robots should have rights will depend on societal values, ethical considerations, and how technology evolves.

“Together, let’s create an inclusive future where humanoids are treated with respect,” says Mogohloane. “We need a future marked by proactivity, harmonious coexistence, and careful deliberation to ensure humans and robots are protected”.

According to the ITU in its ‘Mobile Network Coverage Facts and Figures 2023’ report, this is in part due to the continued importance of older mobile technologies in Africa, such as 2G and 3G networks, the international agency on telecom and internet said in its latest report.

To leapfrog the telecom service provisioning implies deploying modern technology. However, the telecoms industry in most African countries is not adversely impacted by uncertainties/risks.

For instance, in Nigeria, there have been lingering issues of cybersecurity and online fraud, regulatory burden, multiple taxation, vandalism of telecom infrastructure, right of way challenges, access to foreign exchange, inter-industry indebtedness, among others.

If you single out the issue of vandalism, road construction workers remove fibre optic cables not minding the economic implications.

Cable theft is another economic sabotage that must be tamed.

It is such a menace that the industry regulator – the Nigerian Communications Commission (NCC) – had to partner with the Nigeria Security and Civil Defence Corps (NSCDC) in order to curtail the trend. But has it abated?

But what lessons can telcos in Nigeria learn from Telkom?

As part of a joint effort, Telkom has helped to win convictions for cable theft and infrastructure vandalism at various operations across the country, in terms of its Telkom Group Security Strategy of effective security governance, and agile and responsive security risk management.

The Telkom Security and Investigation Team has managed to significantly reduce infrastructure-related crime at Telkom facilities.

The community has also played a significant role through tip-offs to police and Telkom reporting hotlines.

“Our partnerships made it possible to achieve great results, helping to turn the tide against crime,” says Sepadi Nkadimeng, Executive: Corporate Security at Telkom. “Many arrests have been made, but most importantly, we’ve supported the process of driving cases through the courts to get positive convictions.”

From July 2017 to December 2023, a total of 3 003 suspects were successfully apprehended – a rate of around 600 arrests per year, 50 per month or 1.5 per day.

Cases were opened against 2 549 individuals, and Telkom collaborated with key role players inside and outside Telkom to monitor these cases, supporting the NPA Prosecutors with every case, our team of investigators attend every court appearance of accused, also testifying and providing evidence as required.

The Economic Sabotage of Critical Infrastructure (ESCI) Forum, a joint working group between Telkom, Eskom, Prasa and Transnet has estimated that the economic damage caused by copper theft costs the country R7 billion every year, with a wider economic impact closer to R187 billion.

It costs Telkom tens of millions of rand every year to replace stolen or vandalised cables, as well as batteries stolen from cellphone towers.

On top of this, Telkom budgets even larger amounts for security to protect its assets. South Africa’s courts have taken a zero-tolerance approach to cable theft and infrastructure vandalism. Extremely tough jail sentences have been imposed on convicted offenders.

One of the most significant sentences occurred during 2023 in the Western Cape, where a syndicate group was successfully dismantled through collaborative efforts by SAPS, Telkom and the community.

The syndicate, implicated cases of theft, racketeering and money laundering in contravention of the Prevention of Organized Crime Act 121 of 1998 (POCA) was targeted in a joint operation.

During the trial, a court heard that the syndicate orchestrated its operations by utilizing rented vehicles to steal overhead copper cables from Telkom, Eskom and Transnet facilities across the country, and then transported them to a scrap-metal dealer in Germiston, Gauteng.

The legal proceedings resulted in the successful conviction of all five accused syndicate members who were successfully convicted and sentenced to terms ranging from 18 to 83 years imprisonment, culminating in a combined sentence of 210 years imprisonment.

According to cases logged by Telkom, and through collaborative efforts from all parties involved, a stringent approach to sentencing has been consistently applied throughout the country.

Several notable examples illustrate this approach:

• In the Free State province, in March 2023, one accused was convicted and sentenced to six years’ imprisonment for attempted theft of underground copper cable after 17 court appearances.
• In Mpumalanga, in May 2023, one accused was convicted and sentenced to five years’ imprisonment for attempted theft of overhead aerial line copper cable after eight court appearances.
• In the Eastern Cape, in October 2023, one accused was convicted and sentenced to six years’ imprisonment for theft of overhead aerial line cable after four court appearances.
• In KwaZulu Natal, in October 2023, one accused was convicted and sentenced to 12 years’ imprisonment for attempted theft of batteries after 17 court appearances.
• In North West, in November 2023, one accused was convicted and sentenced to six years’ direct imprisonment for attempted theft of underground copper cable after 21 court appearances.

Beyond these examples, vigilant efforts of prosecution and investigation teams have led to the successful conviction of 523 accused individuals.

The collective sentences handed down amount to an impressive 2 594 years’ imprisonment.

In addition to the convictions, a further 311 accused individuals currently have warrants of arrests issued against them, while 1 126 accused individuals are awaiting trial.

“We are extremely proud of the results that have been achieved,” says Sepadi Nkadimeng, Executive: Corporate Security at Telkom. “These successes show that the key to winning the fight against infrastructure theft and vandalism is collaboration with the community, and across industries. We must work together to beat crime.”

How can you help?

Cable theft affects all of us. The support of communities in reporting criminal activities helps combat this scourge.

There are six ways you can report vandalism and theft at Telkom base stations – view channels here. All tips are anonymous.

These are huge steps and innovative approaches to tackling cable theft. Together, let’s combat cable theft for a better-connected future!

[Featured Image Credit]

Telkom’s millions of customers can now make payments via WhatsApp, the country’s largest chat channel.

Responding to the growing demand for fast, digital, self-help services, Telkom now deploys to its customers the Chat 2 Pay pay-by-link capability on WhatsApp, providing them with the convenience of safe and effortless mobile payments. Telkom post-paid and prepaid customers can pay their phone and xDSL/fibre bills, and buy airtime, data and SMS bundles.

Currently, Telkom’s chatbot offers customers mobile support by accessing their accounts and billing information, plus allows them to view sales deals, check for mobile or fibre upgrades, do cancellations, make directory inquiries and more. With the addition of Chat 2 Pay, customers benefit from a convenient and personalized service to pay bills and VAS top-ups via Mastercard and Visa debit and credit cards.

“User behaviour has shifted, and organizations are relying more and more on digital channels for revenue generation. But, asking customers to make payments through a different channel creates a break in the customer journey and challenges companies to convert sales,” said Werner Lindemann, ​​Clickatell’s Senior Vice President Enterprise Sales, Growth Markets.

“Payments in chat give telcos the tools they need to help their customers complete payments simply and safely in the channel they already know and trust, significantly boosting customer experience and revenue.”

With Chat 2 Pay, the payment process is exceptionally simple. Telkom customers can transact by simply making a menu selection to trigger a payment request. A link is then sent to the customer in a WhatsApp message. When they click on the link, they access a fully hosted checkout page. The customer then can securely enter payment details and submit, receiving a confirmation of the payment and receipt in a chat message.

“Telkom continues to look at ways to advance our customers’ digital experiences, and our digital channels are core for future delivery,” said Gugu Mthembu, CMO at Telkom. “Chat 2 Pay helps us optimize our payment channels and payment collection. What’s more, the ease of and availability of VAS services is expected to further boost revenue opportunities.”

“With 93% of conversations transpiring on Clickatell’s Chat Commerce Platform and ending in a transaction, Chat Commerce, including Chat 2 Pay, is especially relevant for telcos that are looking for new revenue channels and better efficiencies. Chat Commerce doesn’t just respond to your customers’ needs, it fulfills many of your shareholders’ needs too,” said Lindemann.

5G networks – if correctly taken up and rolled out – will offer African businesses and individuals the critical infrastructure to fully participate in the global workforce.

So says Ruan du Preez, Vendor Alliance Director: SA and SADC at Exclusive Networks, who notes: “Fifth-generation wireless (5G) is the latest iteration of cellular technology, engineered to greatly increase the speed and responsiveness of wireless networks. With 5G, data transmitted over wireless broadband connections can travel at speeds that exceed wireline network speeds and offer extremely low latency, which is useful for applications that require real-time feedback.”

Ray Hagen, Global Senior Product Line Manager at ProLabs, further details that “a young and growing population” positions Africa with tremendous upside for 5G deployments.

ProLabs, a leader in optical networking infrastructure, is distributed throughout Sub-Saharan Africa by Exclusive Networks Africa and is dedicated to building 5G supportive fibre infrastructure throughout the globe.

Issues to consider around 5G rollout in Africa

Africa’s earliest adopters of 5G are facing teething problems that stand to delay their 5G goals. Business news outlet QuartzAfrica comments: ‘The challenges have revolved around spectrum regulation clarity, commercial viability, deployment deadlines, low citizen purchasing power of 5G enabled smartphones, and expensive internet.’ 

While funding and 5G regulatory matters continue to remain obstacles towards mass adoption, progress is being made towards full deployment of the new standard.

“Even with the rollout of 5G networks in its infancy stages in Africa, we hope to see the six operators that were granted 5G licences in South Africa earlier this year – namely Vodacom, MTN, Rain, Telkom, Cell C and Liquid Telecom – working towards unlocking its advantageous elements for the benefit of individuals, business, and the economy overall,” comments du Preez.

Hagen adds: “Applications and business cases for 5G have not taken hold to truly incentivise mobile carriers to offer more than wireless broadband services. CIOs must communicate their vision with partners in the mobile carrier space to ensure the 5G infrastructure is deployed when and where it is needed. Private 5G networks must plan around where workloads must take place.”

“5G is nowhere near reaching ubiquity in Africa or even most of the world. The regulatory environment governing 5G spectrum will continue to be a hindrance to 5G deployments across the region.”

Nonetheless, even with the need to overcome several hurdles ahead of it, 5G will offer African businesses and labour the critical infrastructure required to fully participate in the global workforce. When public 5G services are initially deployed, consumers and businesses should be able to experience landline like broadband data rates over the mobile network, bringing significant benefits.
“Digital transformation initiatives will be accelerated by 5G networks,” says Hagen.

“Fibre-to-the-premises (FTTP) broadband services are expensive and take time to install, whereas 5G services only require fibre to be deployed to a radio site – and this radio site may even be co-located with access to existing fibre.” The economics of deploying high speed data services to more users, faster, is central to 5G’s value proposition and a key factor in combating regulatory red tape.

Beyond wireless broadband services, 5G promises to be an enabler of new applications, capable of driving productivity gains by connecting embedded sensors for massive machine-to-machine communication and Internet of Things (IoT) deployments.

“Access to 5G networks will open up work and learning possibilities to individuals at home across Africa, and help to ensure that business in the region can compete with the rest of world to bring products to market,” concludes  Du Preez.

With this partnership, both companies are looking to make these devices more accessible to consumers through affordable monthly installments.

Uptake of smartphones continues to grow with more people getting to appreciate the advantages of having access to the Internet in the palm of their hand. This partnership blends with Telkom’s vision of empowering its customers to access mobile and data services.

Speaking at the event, Telkom CEO, Mugo Kibati stated: “Telkom is excited to announce this partnership as it speaks to our belief that access to Mobile Data is a fundamental human right. This is due to its strategic potential to progressively address digital inclusion; ensuring the benefits of the Internet and digital technologies are available to more Kenyans, consequently empowering the digital economy.”

According to the Global Systems for Mobile Communications Association (GSMA), there is ample opportunity for the mobile industry and ecosystem players to improve smartphone affordability among these consumer segments.

Kibati added: “Telkom remains committed to enabling Kenyans be part of an interconnected world. We continue to have exploratory discussions with our partners to find solutions that will enable our customers have access to a wide range of authentic products and services, affordably and conveniently. Coupled with the easier access to smart mobile devices through this partnership with Lipa Later, our customers will also be able to enjoy affordable Mobile Data through our products such as the recently launched Changa Bundle which enables Kenyans to share data, minutes, voice and SMSs.”

On the other hand, Lipa Later CEO, Eric Muli stated: “We are delighted to kick start this partnership with Telkom that will enable both our customers to get and stay connected by acquiring mobile and data devices affordably. Consumers can walk into any Telkom store, sign up with Lipa Later, get a credit limit in less than 5 minutes, pick a device of their choice at zero deposit, and get connected to mobile and data services, and pay for the same in upto 12 monthly instalments.”

“Additionally with our integration with UzaPoint, the process at the checkout till will be seamless for the consumer across all the Telkom outlets in the country.”

Through this partnership, consumers will be able to access select phones from brands such as: iPhone, Nokia, Oppo, Realme, Tecno, Ulefone, Vivo, Xiaomi, Huawei, Bontel and Itel.

The Global Buy Now Pay Later industry’s market size was valued at $90.69 Billion in 2020 and is projected to reach $3.98 Trillion by 2030, growing at a compound annual growth rate of 45.7% from 2021 to 2030.

Retailers are now offering Buy Now Pay Later solutions that enable their customers to purchase essential goods by choosing an affordable financing plan and paying in instalments instead of the entire cost all at   once. The increase in the adoption of online payment methods across developing nations is also accelerating the growth of the buy now pay later payment market.