Market study for privatisation process – South Africa

countries: South Africa
key-subject: universal service/access, privatisation, rural telecommunications development, roll-out strategy, growth projection, marketing strategy
client-type: financial institution, national operator

Together with Goldman Sachs, Intelecon consultants were advisors to Telkom SA during its successful privatisation process. We assessed the national market, projected growth, evaluated the operator’s investment programme, and developed a strategy to service the “untelephoned majority” of the country, the large tracts of rural homelands. Our advice focused on a commercially oriented roll-out plan for Telkom, combining limited private subscribership with public access (related phone shop and payphone) schemes designed to secure the maximum feasible revenues and maintain commercial viability within a very poor population base. Our projections and strategy became the basis for negotiation with Telkom’s new strategic partners.