Telkom goes mobile

Johannesburg - Fixed-line network operator Telkom has made its first foray into the mobile telecommunications market as part of its strategy to remain competitive in a newly liberated SA telecommunications market.

Its Mobi product, a nomadic mobile voice service that competes with the likes of Vodacom and MTN, has been made available in a selected coverage area.

Telkom has also unveiled its mobile data offering Telkom Do 3G on the Move and a fixed-voice service which mimics its landline telephony services using wireless technology.

Mobi and Do 3G have been launched quietly, through details on the Telkom website. The services use Telkom's new 3G W-CDMA network which covers most of Gauteng and Cape Town.

Telkom is expanding the network to eventually cover the rest of South Africa.

While the services are marketed as ready to roll on the Telkom website, Amith Maharaj, Telkom group executive for converged services, said they comprise a limited range of pilot services. Additional products and services are being planned and will be launched in due course.

For the time being, Mobi customers are restricted to direct coverage areas as the service does not yet provide international or third-party network roaming.

Phased approach on cards

Mobi will be attractive to many nonetheless, given its competitive pricing. Mobi is available as a prepaid service or via four contracts: Mobi everyday off-peak, Mobi 200, Mobi 300 and Mobi 500.

The service offers peak call rates from Mobi to other cellular networks at prices ranging from R1.94 to R2.29 per minute, depending on contract. Out of bundle data are provided at R0.99 per megabyte, compared to R2 on Vodacom or MTN.

Looking at one package as an example, Mobi 200 is available for a one-off R199 connection fee and R279 monthly subscription. This includes 200 minutes of call time, 40 free SMS messages per month and 50 MB of data.

"The availability of Telkom's wireless offerings is subject to coverage availability," said Maharaj.

"Telkom's initial focus is on the metropolitan areas and on targeted rural coverage. Coverage is expected to be augmented with a roaming agreement."

There are plans to "aggressively build up" the network over the next few years, with roaming full coverage expected to be available. Telkom will undertake "a phased approach rather than launching all services at once".

Going mobile is a key part of Telkom's plans, with the company being split into three operating units after the sale of its Vodacom shareholding to UK cellular giant Vodafone.

Vodacom represented a majority of Telkom's revenue until now and with its shareholding in the cellular network out of the way, Telkom is free to pursue its own cellphone business as part of the newly formed Telkom SA with Nombulelo "Pinky" Moholi at the helm.

- Fin24.com