Telkom's voice era is over. Data now pays the bills

Telkom Group, South Africa's legacy telecom operator, has finally bid farewell to the voice era. For decades, the company's fortunes were tied to the humble copper telephone line, but those days are behind it now. As of the first quarter of 2026, data has become the backbone of Telkom's revenue, contributing a staggering 62.4% to its operating income. This seismic shift marks a significant milestone in the company's digital transformation, as it gradually phases out its traditional voice business to focus on more lucrative mobile broadband, fibre connectivity, and enterprise digital services.

Telkom's transformation is merely a reflection of a broader trend sweeping across Africa's telecommunications landscape. Operators are increasingly evolving from providers of voice services into digital infrastructure companies, built around connectivity, cloud computing, and enterprise technology. This seismic shift has been driven by the insatiable demand for mobile data, fibre broadband, and cloud services from consumers and enterprises alike. In a world where voice calls are no longer the primary source of revenue, telcos must adapt to survive. For Telkom, this means investing heavily in mobile, fibre, and digital services while maintaining a disciplined approach to capital allocation.

The numbers are telling, and they paint a clear picture of a business in transition. Mobile service revenue increased by 10.2% in the first quarter, driven largely by robust demand for data services. Mobile data revenue rose by 11.4%, while prepaid service revenue grew by 9.1%, thanks to a combination of customer growth and higher data consumption. These figures underscore the company's reliance on data-driven services, which are now the primary growth engines of its business. The mobile business remains one of the group's strongest performers, and its success is evidence of Telkom's ability to adapt to changing market conditions.

Telkom's transformation is not just about shifting from voice to data; it's also about leveraging new technologies to drive growth. The company has highlighted the growing contribution of artificial intelligence (AI) to its consumer business, with AI-driven customer value management platforms now accounting for 54.6% of prepaid service revenue. This innovative approach is helping to personalise offers and improve customer engagement, which is critical in a market where consumers are increasingly demanding more sophisticated services. Telkom's investment in AI and digital services is a strategic move to stay ahead of the competition and capitalise on emerging trends.

As Telkom continues to navigate this new era, it's clear that the voice era is behind it now. Data has become the lifeblood of its business, and the company's future success will depend on its ability to invest in the right technologies and services to meet the evolving needs of its customers. As the telecommunications landscape continues to evolve, one thing is certain: Telkom's decision to shift its focus from voice to data will pay dividends in the long run.

As I reflect on this story, I'm struck by the pace of change in the telecommunications industry. In a world where voice calls were once the primary source of revenue, telcos must now adapt to survive. Telkom's transformation is evidence of the company's ability to evolve and adapt to changing market conditions. As the industry continues to shift towards more data-driven services, one thing is clear: the voice era is indeed over.