8ta signs up 186 000 in first month

In the one month since its launch, Telkom’s new mobile service 8ta has signed up 186 033 new customers, the Johannesburg Securities Exchange-listed telecommunications operator said in notes accompanying its interim financial results, published on Monday.

Telkom launched 8ta on October 18, 2010. The company said these customers have all registered their Sim cards in terms of the Regulation of Interception of Communication Act (Rica).

“8ta’s approach is one of simplicity, quality, value and authenticity,” Telkom said.

“We intend to be innovative and aggressive but rational. We provide differentiated products and pricing, which are difficult to replicate, and importantly, encourage primary Sim usage.”

Telkom launched post-paid products on November 8, 2010 and intends to launch fully converged products to corporate and consumers in the first half of the 2011 calendar year.

“Competitors have yet to replicate our offer at a rate of 65c for calls terminating on Telkom’s fixed-line network. This will provide an attractive incentive to corporate customers in future.”

Mobile voice and data still growing
To date, Telkom has constructed 800 base stations for 8ta. It is working through an order to build a further 2 000 base stations. “We are using the avenues of co-location and infrastructure sharing as much as possible to reduce the extent of our capital outlay,” the company said.

“Telkom is at an inflection point with growth in traditional fixed-line voice revenues declining. We believe that there is a market opportunity in SA as mobile voice and especially mobile data are still experiencing growth.

“Telkom has a competitive advantage by virtue of its existing business and customer base. This is particularly so as wireless voice growth slows and converged data becomes more prevalent. A product range spanning both mobile and fixed value pools will assist Telkom to defend itself more effectively against competitors and to grow revenues,” the company says.

“The mobile business is designed also to assist Telkom in addressing fixed-line cost challenges and to position it more competitively in the market. To this end Telkom will undertake its best endeavours to attain the market share required to achieve its required internal rate of return.”—TechCentral