Telkom CEO Sipho Maseko leaving after 9 years at end of June 2022.

by Thinus Ferreira

Telkom CEO Sipho Maseko is leaving after 9 years and will exit the telecom on 30 June 2022, Telkom announced on Friday morning that is looking for a replacement.

"I feel now is the right time for me to step aside and make way for a new leader who will take Telkom to even greater heights," Sipho Maseko said in a quote provided to TVwithThinus.

"I will stay on until June 2022 to ensure a smooth transition for my successor. I am most thankful to my colleagues across our country, for trusting me to lead Telkom, and for supporting me throughout this journey of transition."

Telkom in a statement said that "The process to appoint a successor is well under way and a group CEO-designate will be announced in the not-too-distant future."

"Sipho would, for the remainder of his tenure, ensure the incoming group CEO-designate’s orderly transition into the role."

Sipho Maseko joined the troubled parastatal on 1 April 2013.

Telkom has since then gone through dramatic restructuring, resized through the retrenchment of thousands of workers and has started to pivot to offering internet-era services like its TelkomONE video streaming service, a Telkom Music app and an expanding Telkom Mobile offering as Telkom is experiencing a dramatic decline in fixed-landline copper line customers and a move towards offering fibre-connected services.  

"During his tenure, Sipho Maseko turned the business around and evolved it from a traditional fixed business to a portfolio of businesses, which comprises the mobile, IT and wholesale infrastructure businesses, and the masts and towers portfolio," says Telkom in its statement.

"Under his leadership, the group has had many remarkable strategic achievements in its execution of its broadband-led strategy, which are reflected in the group's current healthy position."

"The mobile business grew to become the third-largest mobile business in South Africa with more than 15 million customers and generating R20 billion in revenue. The fibre footprint was expanded and the fixed customer base was migrated to new technologies (fibre and LTE). The number of homes connected with fibre now exceeds the number of homes connected with copper."

Here is Sipho Maseko's exit letter to staffers:

Dear colleagues

Today, 8 years, 3 months and 23 days ago, I entered my office on the 24th floor in Telkom Towers North in Pretoria for the first time. I remember it like it was yesterday. I remember the anxiety and the unfamiliarity that comes from being the new kid on the block. Mostly, though, I remember feeling excited and determined; determined to do the job and do it right, and determined to build a new, better Telkom. This has always been of utmost importance to me: always leave a place better than you found it.

My moment of leaving is now taking shape. I have informed the Board that I will be stepping down as Group CEO of Telkom Group on 31 March 2022. My final day of service will be 30 June 2022, in other words after the annual results, and on completion of my notice period.

The right time to leave

As my Telkom journey enters the home straight, the foremost question on my mind is this: is Telkom a better place?

Eight years ago, the mission was very clear: we must save the company, get it to be sustainable and able to hold its own in the future relative to its peers. I’m broadly satisfied that this mandate has been fulfilled. Today, Telkom is a stable company. We have de-risked our business, we have a very clear strategy for each of the business units. We are on a clear and definite path to unlock value for our shareholders, indeed all our stakeholders. It wasn’t an easy ride, but our perseverance has paid off. I remain very optimistic and confident about our strategy and the future of the company.

So, this is the right time for me to step aside and make way for a new leader able to take Telkom to even greater heights. The Board will soon make a separate announcement in this regard.

We built Telkom together

Telkom is by far the most exciting, complex, challenging and fascinating “project” I’ve ever been part of. In fact, I quickly fell in love with the firm. Its history, role in South Africa, achievements, challenges and possibilities made me decide to spend the better part of my adult career here.

I am so proud and so very thankful for many things. I can’t begin to list them all in this communiqué. But let me say this: I am most thankful to you, my colleagues across our country, for trusting me to lead Telkom, and for supporting me throughout this journey; a journey that often took us to unexplored places.

Not only does Telkom have talented people, the company is blessed with people who are willing to make sacrifices. And over the years, people have sacrificed. For this, past and present employees have my thanks and utmost respect. I know this attitude will continue to serve the firm well as the future unfolds. Long may Telkom’s prosperity last!

Looking ahead

For the next eight months until our financial year-end, I will give my all to ensure we meet, or even exceed, our financial and non-financial objectives – one last push to ensure Telkom continues to evolve into a better place.

We will hopefully be able to engage and meet up over the next eight months to reflect on where we came from, and where Telkom is heading.

I thank every one of you.

Sipho

Telkom launches its TelkomONE video streaming service including linear TV channels with free package and R7 per day subscription; plans more bouquets and says 'we're here for the long run'.

by Thinus Ferreira

Telkom that initially promised to do so on Thursday last week, on Monday launched its new TelkomONE streaming service, offering some linear TV channels in its offering, with a free version as well as a TelkomONE Amp subscription package that will cost R7 per day or R49 per month.

While currently only offering the free package that will carry advertising and one AMP subscription package, Telkom says it will expand over time to offer various different subscription fee packages.

The TelkomONE video-on-demand (VOD) service was built by Discover Digital and Telkom signed a 5-year contract with the SABC to carry SABC1 and SABC2 as linear TV channels, as well as a package of library content from the SABC archives for its video-on-demand service. 

TelkomONE however carries more than just SABC content. The heavy local catalogue curated along the genres of lifestyle, comedy, music and reality TV content is flavoured with some international shows from Hollywood and independent overseas studios, and well as from South Africa locally.

TelkomONE is available through downloading it as a mobile app, internet browsers at telkomone.tv on personal computers, Android TV and Telkom's own Telkom LIT set-top box. Payment for TelkomONE can be done with Telkom airtime, adding it postpaid to fixed and mobile Telkom contracts, credit and debit cards, vouchers or cash.

Telkom declined to answer when TVwithThinus on Monday asked what the financial investment in rand has been so far in establishing TelkomONE as its video-on-demand service and for what period it will definitely be running it before evaluating its prospects and return on the investment to the telecom's bottom line.

Linear TV channels that will be streaming on TelkomONE include SABC1, SABC2, Kaya TV, SABC Sport, SABC Education, Mindset, Al Jazeera, africanews, Deutsche Welle, euronews, France24, RT, GOD TV, Hope Channel, Inspiration TV and SonLifeBroadcasting Network (SBN).

The SABC's 19 radio stations will also be streaming on TelkomONE including MetroFM, RSG, Umhlobo Wenene, 5FM, Thobela FM and Ukhozi FM. 

Included in the TelkomONE AMP package users get an additional 30 curated audio playlists that is done by a Canadian service provider packaging and distributing African content.

Notably absent from TelkomONE is SABC3 because the streaming licensing rights for international content on the channel couldn't be cleared, as well as the SABC's own TV news channel SABC News. 

Neither Telkom nor the SABC explained why SABC News isn't available although it's likely that although it is a public broadcaster channel, it was commissioned and is being paid for by MultiChoice for its DStv service.

The SABC will receive an annual channels carriage licensing fee for its linear TV and radio channels, as well as for the on-demand archive content, 10% of which the SABC will cycle and change monthly to keep it fresh. This deal includes 1000 of hours of VOD content. 

The SABC will also share in the TelkomONE advertising revenue.

The SABC placing its content on TelkomONE is separate from the SABC's plan to launch its own SABC iPlayer video streaming service in 2021.

Sipho Maseko, Telkom CEO, says "TelkomONE will make it possible for subscribers to pause, go back into the electronic programming guide and time-shift, and instantly watch a scheduled TV show they may have missed. Telkom is making digital TV functionality available to all".

Madoda Mxakwe, SABC CEO, says "We believe that the transition to digital broadcasting and over-the-top (OTT) is a key strategy for the survival and relevance of the South African public broadcaster".

Stephen Watson, founding managing director of Discover Digital that built TelkomONE, says it contains technologies and functions that are first in the African market.

On the AMP package a subscriber can download 5 titles and a user have 48 hours to start watching. 

Users can record content and shows from the live linear TV channels which will be recorded in the could and then appear in the account section under "my recordings".

Interestingly, if you've missed a show, users can now go back into the past with the free package on the EPG for 24 hours and select a show that was already broadcast, and it will play immediately. On the AMP package a TelkomONE viewer can scroll back on a specific linear TV channel as far as 3 days and still watch a specific show.

With TelkomONE the time-shifted PVR function is therefore no longer limited to consumers who can afford a set-top box with a hard drive.

TelkomONE will also offer a 4K channel broadcasting music festivals and says it will build out its 4K content offering over time. Within the free package TelkomONE will offer talk shows and music artists performing live, streamed in 4K resolution, which will be available to Telkom LIT box users.

After Telkom last week said "we're ready" and will launch on 5 November, Wanda Mkhize, Telkom's executive for smart home and content, told TVwithThinus about the postponement that "with us delaying the launch and actually launching today we had some technical and connection challenges on Thursday and unfortunately couldn't launch the platform and as such we made sure that we could at least deliver as soon as possible and that's why TelkomONE is launching today".

TVwithThinus also asked whether the TelkomONE app will also be added to MultiChoice's latest DStv Explora that will carry and offer a carousel of different VOD streaming services like Netflix, Showmax and Amazon Prime Video, or in terms of set-top boxes it will be limited to Telkom LIT.

Wanda Mkhize said that "Telkom and MultiChoice have had a longstanding relationship, we currently carry the DStv application on our Telkom LIT box, and relationships with regards to services and what we produce we would definitely continue having those conversations".

With the South African VOD landscape already littered with failures like VIDI, Altech Node, PCCW's OnTapTV, Kwesé Play and Kwesé TV and most recently Cell C black that sucked up hundreds of millions of rands without a return on investment, Wanda Mkhize, when TVwithThinus asked for how long TelkomONE will definitely be running, said "we're here for the long run".

"We've looked at the strategy, we've framed it in regards to introducing two bouquets right now. We have a future-view of introducing more bouquets, opening up and create greater access specifically to our fixed-line customers."

"We also believe and are following the strategy of being a super-aggregator which means that we believe that our customers need to have choice in regards to the services that they like to take up. Therefore we will be introducing more services onto the platform and giving our consumers- both mobile and fixed - more access."

ALSO READ: Youth-focused, mobile-focused video streaming service TelkomONE with linear TV channels set for launch on 5 November 2020; Telkom says it won't be competing with Netflix and Showmax.

BREAKING. SABC, Telkom sign multimillion rand deal for infrastructure; Telkom to help SABC acquire sport broadcasting rights.

The SABC and Telkom today signed a multimillion rand partnership contract in Pretoria whereby the two parastatals will work together to bring the SABC's content to South African viewers on mobile devices such as laptops, tablets and cellphones, and with Telkom helping the SABC in acquiring expensive sport broadcasting rights together.

The telecommunications giant and the South African public broadcaster will use their infrastructure jointly to bring the SABC's content to South African viewers on mobile devices such as laptops, tablets and cellphones.

Telkom will also throw its weight and money behind the SABC to try and acquire expensive sport broadcasting rights in conjunction with the public broadcaster. It's Telkom's first new foray into the TV and video content acquisition field since the massive, eventual non-starter which was Telkom Media -  a failed attempt to start a satellite pay-TV service.

Under the new deal Telkom will also "enhance" the SABC's current technology infrastructure. In terms of the multimillion rand agreement Telkom will install fibre infrastructure and services at the SABC's bureaus in all provinces across South Africa and put Telkom lines in all offices.

"We will start to explore doing some things jointly in sports," said Sipho Maseko, Telkom's group CEO, "even acquiring sporting rights together".

"It begins to signals a way in which we will use our infrastructure to get SABC content onto people's devices - wherever they might be," said Sipho Maseko.

"It's a huge amount we're going to invest," said Hlaudi Motsoeneng, the SABC's famously matricless acting chief operating officer (COO). "We're going to invest airtime on their site. Both parties will benefit."