Telkom Group, South Africa’s legacy telecom operator, has crossed a significant milestone in its digital transformation, with data now accounting for nearly two-thirds of its operating revenue.

The achievement reflects the telco’s steady transition from a voice-first business to one increasingly driven by mobile broadband, fibre connectivity and enterprise digital services, as traditional fixed-line revenue continues its long-term decline. In its trading update for the first quarter ended June 30, Telkom stated that data contributed 62.4% of group operating revenue, reinforcing its transformation from a legacy voice operator to a data-led business.

The results underscore how mobile broadband, fibre and cloud services have become the company’s primary growth engines. The results also reflect a broader shift across Africa’s telecommunications industry, where operators are evolving from providers of voice services into digital infrastructure companies built around connectivity, cloud computing and enterprise technology.

“Data remains the cornerstone of our strategy, contributing 62.4% of Group operating revenue,” Telkom said in its trading update, adding that its performance reflected “continued execution against our strategic priorities.”

The operator stated that growth was driven by investments in mobile, fibre and digital services while maintaining disciplined capital allocation.

The company noted that continued investment in mobile, fibre and digital services, alongside disciplined capital allocation, had supported the quarter’s performance. 

The transformation is particularly notable for a business whose fortunes were once tied almost entirely to copper telephone lines. Today, Telkom’s strongest growth comes from mobile data, fibre broadband and cloud services, mirroring how consumer and enterprise demand has shifted away from traditional voice offerings.  

The mobile business remained one of the group’s strongest performers.

Mobile service revenue increased 10.2%, supported by robust demand for data services. Mobile data revenue rose 11.4%, while prepaid service revenue grew 9.1%, driven by customer growth and higher data consumption.

Telkom also highlighted the growing contribution of artificial intelligence (AI) to its consumer business, saying AI-driven customer value management platforms now account for 54.6% of prepaid service revenue, helping personalise offers and improve customer engagement.

Openserve, the group’s wholesale infrastructure business, continued expanding South Africa’s fibre footprint.

Homes passed increased 13.2% year on year, while fibre subscribers grew 15.5%, reflecting continued demand for high-speed broadband. During the quarter, Openserve also launched its own internet service provider to improve infrastructure monetisation while maintaining its open-access strategy.

“We continue to invest in expanding our fibre footprint while improving utilisation of our network assets,” the company said. BCX, Telkom’s enterprise technology subsidiary, delivered mixed results as businesses remained cautious about IT spending.

BCX’s overall revenue declined 10.9%, largely due to lower hardware and software sales. However, the business recorded strong growth in higher-margin digital services, with cybersecurity revenue increasing 36.6% and cloud revenue rising 11.8%, reflecting growing enterprise demand for managed security and cloud solutions.

Telkom said BCX remains focused on expanding its digital portfolio while strengthening artificial intelligence capabilities to support customers’ technology transformation journeys.

Across the group, Telkom noted that disciplined execution and continued investment in digital infrastructure positioned it well for sustainable long-term growth despite persistent macroeconomic pressures.

“The Group remains focused on executing its strategic priorities, driving operational efficiencies and investing in future growth opportunities,” said the company.

While legacy fixed-line and voice services continued their structural decline, the latest results suggest those businesses are no longer defining Telkom’s future. Instead, growth is coming from mobile broadband, fibre connectivity, cloud computing and cybersecurity, businesses that are reshaping the company into a modern digital infrastructure provider.

As mobile broadband adoption rises and businesses embrace cloud, AI and cybersecurity, connectivity is becoming the backbone of the digital economy, not just phone calls.

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