South African fixed-line operator Telkom is considering acquisitions of ICT companies, as it predicts that ICT will be the “biggest growth sector” in South Africa over the next five years.
In a presentation published alongside its six-month interim…
South African fixed-line operator Telkom is considering acquisitions of ICT companies, as it predicts that ICT will be the “biggest growth sector” in South Africa over the next five years.
In a presentation published alongside its six-month interim results, Telkom outlined a business and ICT strategy, which includes pursuing ICT in certain key areas, including unified communications, cloud services, and LAN management.
According to the presentation Telkom will also consider ICT acquisitions as part of this new strategy.
The company has been struggling as demand for its fixed-line services declines.
In its interim results, it reported that operating revenue from its fixed-line operation was R15.4bn (US$1.84bn) for the six months up to the end of September, down 3.9% from the same period last year.
The group’s CEO, Nombuelo Moholi, said that the six months under review had been “very challenging” and that it was imperative that the company moves into select adjacent markets to grow its revenue streams.
“We are transforming our network to allow us to move further into the mobile and select value-added ICT markets,” he said.
