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Unpacking our PIVOT Strategy

We are committed to our purpose of seamlessly connecting our customers to a better life. We aim to make life better for our customers at work and at home, whether they are learning, being entertained, or connecting with friends, family and customers from around the world.

By delivering on our purpose, we will achieve our goal of leading in the converged ICT space, bringing together fixed, mobile and digital services for our customers.

The word “PIVOT” captures our five-pronged strategy and its four Group enablers. It encourages all employees within every team, department and business unit to drive continual change as we seek new ways to serve customers.

Leader in the converged ICT market

P
Partnerships

Leverage partnerships optimally to support the implementation of the Group strategy

I
Integrated
solutions

Offer end-to-end converged propositions from connectivity to IT solutions

V
Victory in broadband

Become the leading broadband provider in South Africa

O
Operational efficiency

Develop operational superiority, which provides a competitive advantage

T
Technology innovation

Modernise and build a state-of-theart network

Seamlessly connecting our customers to a better life

Group enablers

Monetise our infrastructure assets as OneTelkom
People development and empowerment
Simple and digital processes
ESG-aligned financial framework for sustainable value creation

PIVOT captures the transformational changes to our core business in response to the shift from voice to data, from copper to fibre, and from fixed‑line to mobile.

Increasingly, our industry is characterised by diverse digital services, automation and data‑driven decision-making. PIVOT speaks to our moving beyond mere connectivity to IT service solutions and digital ecosystems.

PIVOT aligns with the four SDGs most applicable to our business. Refer to our performance against the SDGs for more information.

Group enablers

We encourage business units to monetise our infrastructure assets as OneTelkom. We monetise, or earn revenue from, our assets by utilising them in deploying mobile and fixed connectivity, data services and a broad portfolio of IT services. We also make our assets available for use by third parties, such as internet service providers (ISPs) and network operators.

We introduced several new OneTelkom initiatives to sweat our assets. These involve collaborating across business units while respecting wholesale and retail boundaries to:

  • Win more business
  • Promote operational synergies
  • Drive capital efficiency

While our operating model is still based on federated business units, our strategic framework emphasises the synergies between them, rather than their separation.

Employees remain the driving force of our business, despite increased digitalisation. We must empower them to cope with the industry's relentless changes and to make decisions at the local level. Therefore, we remain committed to people development and empowerment.

Improved customer experience depends on simplifying and digitising our processes, and we are implementing initiatives to drive this.

Our fourth enabler is sustainable value creation through our ESG-aligned financial framework. Telkom's sustainability depends on our ability to generate cash from operations consistently. This aligns with the need to meet our ESG responsibilities so that we create shared value for the Group and our stakeholders. Refer to our ESG strategy.

FY2025 strategic performance snapshot

             
Strategic priorities   Why it is a priority Measures of our progress FY2023 FY2024 FY2025 Why the measures are important Target

Partnerships

P
Partnerships enable the Group strategy. We seek to simplify and maximise partnership opportunities for the Group. Revenue from global IT hardware and software partnerships R1 411
million
R1 454
million
R 1 527
million
It shows the development of new partnerships to complement our core services. Leverage partnerships optimally to support achievement of the Group strategy.

Integrated solutions

I
Addressing customers' ICT needs comprehensively requires appropriate access solutions. These solutions must seamlessly integrate with various IT services, from traditional (hardware and software) to new and emerging (cloud and IoT) IT services and analytics. Beyond Connectivity revenue and as a percentage of total mobile revenue R1 177
million
(5.8%)
R1 665
million
(7.5%)
R1 685
million
(6.9%)
They indicate progress in supplementing traditional connectivity with service offerings that resolve customer pain points. Offer end-to-end converged propositions from connectivity to IT solutions.
Cybersecurity product and service revenue R454
million
R522
million
R469
million
PaaS solution sites 10 59 501

Victory in broadband

V
We are building new digital services on high-speed data networks. We are accelerating our capability to disrupt the local broadband market by delivering innovative and value-rich solutions. Telkom offers these to residential and commercial customers via the optimal access technology – copper, fibre, fixed wireless, mobile or satellite. Mobile broadband subscribers in Telkom Consumer 11.6
million
12.7
million
15.2
million
Continuous growth in data traffic and associated data revenue highlights the increasing demand for data-centric services. Become the leading broadband provider in South Africa.
Fibre broadband subscribers in Telkom Consumer 179 500 213 400 220 669
Fixed-broadband data traffic (petabytes) 1 895 2 307 2 915
Enterprise next-generation data access revenue in BCX R1 480
million
R1 561
million
R1 770
million

Operational efficiency

O
In an increasingly competitive world, our success depends on continually improving the efficiency and effectiveness of our operations. Fibre connectivity rate (%) 47.4% 48.5% 50.4% They show how we improve customer experience and capital efficiency and reduce the cost of maintaining a large property footprint while generating cash for reinvestment. Develop operational superiority, which provides a competitive advantage.
NPS in Openserve 68 70 72
Use of AIOps revenue growth 8% 9% 6%
Fibre average time to install (days) 2.51 2.43 2.36

Technology innovation

T
We aspire to operate with the most scalable and efficient network. To achieve this, Telkom invests in an optimal mix of technologies. Fibre access connections (number of connections) 492 812 590 527 694 630 They demonstrate the continual investments made to deploy the latest mobile, fixed and digital technologies. Modernise and build a state-of-the-art, seamless, data-led network that is not easily replicable to sustain our integrated competitive advantage.
Mobile base stations (number of base stations) 7 546 7 738 7 909

Performance across strategic pillars

This section should be read in conjunction with the business unit performance sections starting from Openserve.

P
Partnerships

Partnerships

By deploying the relevant digital platforms, we enable best-of-breed partners to deliver relevant services quickly and efficiently to our customers.

FY2025 progress

Telkom, in partnership with the Inclusive Society Institute (ISI) and Constructor University Bremen, launched the 2024 South African Social Cohesion Index (SASCI) research findings in February 2025.

The study showed an overall improvement from 51.7 points in 2023 to 53.3 points in 2024. The research aims to inform policy development and support initiatives for a more cohesive society. This aligns with Telkom's mission to foster socio‑economic growth and stability.

Read more under intellectual capital.

openserve-image

Openserve partnered with Intelsat to upgrade hardware and enhance satellite connectivity at over 900 sites across South Africa.

The partnership allows Openserve to leverage Intelsat's advanced technology to meet evolving connectivity demands.

The project has significantly improved network performance and delivered higher throughputs at lower costs. It is providing more reliable services to businesses and communities, especially in remote areas.

Read more under Openserve productive capital.

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I
Integrated solutions

Integrated solutions

We aim to provide value-added services on top of connectivity services.

  • Fixed-line consumers: Content services, such as media streaming, and smart home solutions like web-based security
  • Mobile subscribers: Bundling social media applications and creating synergies between fixed, mobile and digital services
  • Enterprise: Applications that streamline business service include e‑commerce, point‑of‑sale systems, inventory control, cloud services, digital platforms and embedded cybersecurity
  • Small and medium businesses: Tools to enable a mobile sales force and cloud‑based tools to become more agile, responsive and professional

FY2025 progress

Openserve was recognised as Analytico's 2025 Preferred Business Fibre Provider in South Africa. This reflects Openserve's delivery of reliable, high‑speed connectivity solutions that empower businesses. Openserve's NPS has also consistently risen each year since 2021.

Telkom Consumer's connectivity revenue, encompassing airtime advances, insurance, content and fintech, continued to grow in real terms and as a proportion of total mobile service revenue.

To support this growth, we launched TelkomLearn, a digital platform that provides access to premium educational resources through accredited partners.

BCX advanced its reimagined strategy, aiming to become a leading everything-as‑a-service (XaaS) provider. BCX offers a unified solution to clients, partnering with public cloud providers like Alibaba, AWS, Microsoft Azure and Huawei. It saw consistent growth in enterprise nextgeneration data revenues.

Swiftnet continued to roll out PaaS solutions for mobile service providers. These solutions shift the responsibility to provide backup power from the service provider to the tower owner.

This reflects our progress in enhancing traditional connectivity with service offerings that address customer pain points.

icons openserve-img
V
victory-in-broadband

Victory in broadband

We aim to build on our strength as a connectivity provider in fixed and mobile to provide data services to a broad range of customers.

Our connectivity services are built on our digital infrastructure assets, which enable the digital needs of corporates, SMMEs and consumers.

FY2025 progress

  • Openserve: Steady growth in fixed-line broadband data traffic, driven by an increase in connected homes and higher data demand per household
  • Telkom Consumer: Growth in mobile and fibre broadband subscribers
  • BCX: Growth in enterprise next-generation data access revenue, fuelled by increased data demand and customer growth

This continuous growth in data traffic and associated revenues underscores the rising demand for data.

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op-ef-woman
O
operational-efficiency

Operational efficiency

We aim to build on our strength as a connectivity provider in fixed and mobile to provide data services to a broad range of customers.

Our connectivity services are built on our digital infrastructure assets, which enable the digital needs of corporates, SMMEs and consumers.

FY2025 progress

Openserve's industry-leading fibre connectivity ratio continues to improve as we transform our fibre investments into revenue-generating households. This will generate cash to cover operating costs and fund future investments, ensuring long-term sustainability.

Openserve's average time to install fibre has steadily decreased due to ongoing process refinements across the installation value chain.

BCX implemented generative AI automation in the call centre and rolled this out to 50 customers. The technology enables us to analyse the quality and sentiments of over 90 000 calls per month in real time and to reduce overall costs. This is just one way in which we are using AI to improve efficiency in operations.

These examples highlight the improvements in our operational efficiency metrics.

highlights highlights-img
T
Technology innovation

Technology innovation

We deliver value for our customers by deploying technology optimally to improve the network experience and reduce service costs. This includes:

  • Rolling out 5G base stations for better spectral efficiency
  • Introducing the latest fibre-optic transmission modules to increase FTTH speeds
  • Investing in new digital platforms to deliver best-of-breed services

FY2025 progress

Telkom supported the Independent Electoral Commission (IEC) in delivering the national elections in May 2024. We hosted the IEC website and provided connectivity to 320 results-capturing sites and 10 results centres. Our extensive network infrastructure and advanced security measures ensured reliable and secure data transmission, safeguarding the integrity of the electoral process.

The consistent increase in Telkom Consumer mobile base stations is fuelled by subscriber growth, rising data traffic and enhancements in network experience.

Openserve is expanding its fibre access connections by building innovative, efficient, resilient and scalable fibre networks.

These are examples of our ongoing deployment of the latest mobile, fixed and digital technologies.

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tel-building
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