New revenue sources

ADSL South Africa (Broadband South Africa), 6 March 2007

It’s clear that Telkom is searching for new revenue sources if its desire to expand into the rest of Africa can be seen as an indication of this.

The acquisition of the ISP (Internet Service Provider) Africa Online recently is proof of Telkom’s desire to expand into the rest of Africa.

Why expand into the rest of Africa?

Although various reasons might be found, including the almost untapped potential of the rest of Africa where development is of concern, ADSL South Africa tends to believe that pressure on revenue sources at home primarily drives Telkom’s search for ‘greener fields’ elsewhere.

‘Telkom argues that the acquisition of Africa Online forms part of its vision of offering a package of voice, data, video and internet services in Africa to ensure sustainable growth’ (Telkom in Africa, Business Day, 27 February 2007). While this is true one can’t help to also believe that increased competition at home is another reason for the acquisition. Nonetheless Telkom’s move makes business sense. They have nothing to be ashamed of in that regard.

ADSL South Africa(Broadband South Africa), while not one of Telkom’s biggest supporters, welcomes their efforts to expand into the rest of Africa. There’s a real possibility that people living in areas with poor or non-existent telecoms services might appreciate their presence.