Telkom SA spins off wholesale division into a separate company

14 Oct 2015

South African incumbent fixed line operator Telkom is set to establish a separate wholesale company – dubbed ‘Openserve’ – in line with its turnaround strategy to divide its wholesale and retail divisions ‘to facilitate greater focus, accountability and customer centricity’. The division is set to supply Telkom and alternative telecoms operators with wholesale fibre broadband access as well as metro Ethernet, IP Connect (IPC) and South African Internet eXchange (Saix) services, in addition to reselling DSL services. Telkom CEO Sipho Maseko said the decision to establish Openserve as a standalone infrastructure provider would have a big impact on South Africa’s economy and would help to bridge the digital divide. ‘Through this separation, Telkom will improve its customer focus and establish clearer lines of accountability. As a standalone business unit within Telkom, Openserve will be autonomous and will be responsible for its own profit and loss account,’ the company said.

South Africa, Telkom South Africa