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Our business
Operating context
Delivering on our strategy
Our governance structure
Administration
Fibre to the home and business
(FTTx)
The rollout of fibre is an important part of realising the
full potential in moving to a digital-based economy,
including especially in becoming the preferred provider
of communication and lifestyle services for families.
Unfortunately our progress in rolling out fibre continues
to be slower than anticipated, as we develop the systems
and skills needed to deal with a very different business
model to our traditional mobile-based offerings. We
have entered into wholesale agreements to facilitate
the faster rollout. During the year, we connected
54 household estates/business parks, and are
currently rolling out a further 146 household
estates/business parks, with a total count of 3 483^
households/businesses connected. At year-end we
had 21 381 end-points passed. Looking to the future,
we will be identifying opportunities for co-build, and are
confident that will deliver our fibre rollout targets.
and Mezzanine. This year, our IoT revenue grew 19.1% to
R662 million. We have already started executing on our focus
areas of agriculture, utilities and health. We have also
commenced our network build in narrowband IoT (NB-IoT),
which we plan to launch commercially in major metropolitan
areas in South Africa during 2017.
g
g
Scaling converged services:
We are looking to grow market
share in fixed data and fixed voice (VOIP) through our targeted
investment in fibre and fixed wireless services, and in next
generation networks, including software defined networks (SDN)
and the evolution of multiprotocol label switching (MPLS) to
SDN. We will also be developing new broadband services,
enhancing customer service, and accelerating our service
offerings and market share in cloud and security.
g
g
Realising opportunities in the SME sector from a
segmented perspective:
We see significant growth
opportunities for digitalisation in the SME sector, which remain
underserved in high-speed broadband with only around 7%
penetration in fixed-line services. Our goal is to become the
SME’s digitalisation partner of choice, by defending our market
leadership in mobile, expanding our presence in fixed and next
generation networks, developing innovative tailored propositions
with a strong focus on cloud-based apps and converged
solutions, and being a recognised leader in customer service
and delivery.
To deliver on these growth ambitions we will be looking to
maintain our leadership position in mobile, and consolidate our
position in cloud and cybersecurity, by developing segmented
propositions to enhance our product portfolio and taking these
to scale, supported by the development of new business
partnerships and alternative business models. We will build on
our strengths as a pan-African carrier, by expanding and
strengthening mobile and fixed connectivity, and developing
partnerships and core capabilities across the region. We will also
ensure best-in-class sell, build and run functions, developing
the new skills and competencies needed to understand our
customers, develop tailored propositions, and ensure leadership
in sales execution and customer experience.
Enterprise growth – Our 2017 performance
FY16: 20.5%
of Group service revenue
22.4
%
^
Enterprise revenue
contribution:
SA mobile enterprise revenue
(R million)
FY16
FY17
6 905
7 884
+9.7%
1
VBA service revenue
(R million)
FY16
FY17
1 513
1 354
-10.5%
(+1.4%*)
1. Growth excluding the impact of Autopage.
^ These items were the subject of the limited assurance engagement performed by KPMG.
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