Sipho Maseko speaks honestly about Telkom’s monopolistic past

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

Telkom CEO Sipho Maseko said the company is still grappling with its monopolistic past, which has hampered its ability to function in a competitive market.

For decades, Telkom enjoyed a legally protected monopoly in the South African telecommunications market.

The company owned nearly all telecoms infrastructure in South Africa and if someone wanted a fixed line or broadband connection, Telkom was the only game in town.

Speaking at a recent Unleashing Leadership Potential event, Maseko said they were rocked when competition arrived.

“When you are a monopoly you do not have to compete, and that is what we were for 100 years,” said Maseko.

“We had salespeople – the title on their business cards said sales – but you were the only guy from who they could get the service. So, you are not a sales guy,” he said.

Maseko said Telkom only really began to sell products around 2010. Before that, the company was a monopoly which took orders.

“When Eskom says they sell stuff it is a crock of nonsense. They are the only guys. They don’t compete with anyone. They don’t have to innovate. They don’t have to compete on price,” he said.

Maseko said Telkom was exactly the same. “We did not have to sell stuff. We took orders. You called us for an order, and we fulfilled that order.”

“We probably slapped you around a little bit and still gave you the order,” he said.

The struggle to adapt

When the market changed and competition arrived, especially from the mobile operators, Telkom had to adapt and learn new skills.

One of these skills was how to sell, which Maseko described as a traumatic experience because it was not necessary before.

“I don’t think we are there yet because our systems and processes were not designed for a selling company,” said Maseko.

“Our people were not trained to sell. They were order takers – that is what they were trained to do.”

He said Telkom’s staff were not trained to sell on price and innovation and to ensure their products were better than their competitors.

“That is what we need to change, and I think that will take us a long time. To transition a company from a monopoly to compete on products and services – that journey still has a long way to go.”

Sipho Maseko speaks about Telkom

Now read: Telkom in numbers

Sourced from: MyBroadband. View the original article.

—————————————————————–

Did you know that we have just updated all our comparison sections?
There’s no better way to make an educated decision than to compare offers first!

Alternatively >>>Leave your detail<<< and have a few providers contact you!

**PS. If you are a Telecoms Reseller in South Africa be sure to check out Telecoms-Channel which is specifically designed to provide you with content, insight and analysis to establish yourself as an authority in the industry.**

—————————————————————–

We've helped thousands, now let's help you.

We are committed to helping you to make an educated buying decision, and finding the best telecoms partner for your business.

Compare VoIP Providers in South Africa
Euphoria and WhichVoIP Survey