Telkom’s customers still wrestle with a fragmented buying experience – trying to bundle fibre, mobile handsets and a fixed‑wireless plan often means navigating three separate systems. Group CEO Serame Taukobong says that painful reality is the very reason the telco has launched a multi‑year overhaul of its back‑office platforms, a move he believes will finally let South Africans shop a truly converged package at a single touchpoint. “Walk into a shop and try to purchase fibre, five phones and an LTE service and you’ll hit four different ecosystems,” Taukobong told TechCentral after the company released its FY 2026 results. The overhaul targets the operational and business support systems (OSS/BSS) that control everything from provisioning to billing, marking the first such revamp on the mobile side since he joined the group.
The ambition sits at the heart of Telkom’s “OneTelkom” strategy – a push to automate processes, digitise the business and present a unified proposition across its Openserve wholesale arm and consumer mobile division. When asked whether the upgrade would boost average revenue per user (ARPU), the CEO was unequivocal: “That’s the key thing for us. Absolutely.” A seamless bundle, he argues, is not just a convenience but a revenue engine in an increasingly competitive market where customers expect fibre, mobile data and fixed‑wireless to live under one roof.
Telkom BSS transformation reshapes capital spending
The shift in focus is reflected starkly in Telkom’s FY 2026 capital expenditure profile. While total group capex rose 10.4 % to R6.43 billion, the bulk of the increase stemmed from IT investment linked to the BSS transformation, rather than traditional network build‑out.
| Capex Category | FY 2025 (R bn) | FY 2026 (R bn) | % Change |
|---|---|---|---|
| IT solutions (BSS) | 0.29 | 0.95 | +228 % |
| Mobile network | 2.79 | 2.69 | ‑3.5 % |
| Network rehab & sustainment | 0.34 | 0.03 | ‑92.2 % |
| Total Group Capex | 6.07 | 6.43 | +10.4 % |
The table makes clear that IT spend more than tripled, eclipsing the relatively modest growth in mobile infrastructure and the dramatic cutback in network maintenance.
This reallocation signals a strategic pivot: the OSS/BSS programme is slated to run two to three years, meaning IT‑related capex will stay elevated well beyond 2026. At the same time, authorised but uncontracted capex surged to R8.54 billion, up from R3.91 billion the year before, hinting that a network catch‑up is also on the horizon once the back‑office foundations are solidified.
Taukobong describes the split as “a continued balance.” As the mobile network expands to serve a swelling prepaid base, the telco is building “headroom” to protect speeds and lower roaming costs paid to rival operators. In practice, this means customers could see faster data and cheaper international access even before the full bundle rollout is complete.
Fixed‑mobile convergence – bundling fibre, mobile and fixed‑wireless on one account – is fast becoming an industry‑wide defence against falling ARPU and rising churn, as voice and data revenues grow commoditised. What sets Telkom apart locally is its ownership of a sizable fixed‑line and fibre footprint via Openserve, coupled with a rapidly expanding mobile arm. Yet, until now, the company has struggled to package these assets into a single, market‑ready offering.
Group revenue edged up 1.4 % to R44.48 billion, propelled mainly by mobile and data growth. The modest top‑line increase underscores how crucial the BSS overhaul will be for unlocking higher‑margin services and preserving market share in a crowded SA telecommunications landscape.
As the transformation gathers pace, the real test will be whether Telkom can translate its hefty IT spend into a seamless customer journey that delivers on the OneTelkom promise. If the integration succeeds, South African consumers could finally enjoy a one‑stop shop for all their connectivity needs – a move that would not only boost ARPU but also cement Telkom’s position as a true converged operator in the country’s digital future.